Budget Speech 2026 DEEP DIVE | Who were the winners and losers?
· The South African
Finance Minister Enoch Godongwana tabled the 2026 National Budget in Parliament in Cape Town on Wednesday, outlining a fiscal plan shaped by improved revenue collection and a stabilising debt outlook.
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According to National Treasury, South Africa’s macroeconomic position has improved compared with a year ago.
Public debt has stabilised and government revenues have been buoyed by a surge in mining income, allowing the minister to withdraw previously signalled tax hikes.
READ | SASSA grant recipients the BIG winners in Budget Speech 2026
So who were the big WINNERS and LOSERS following Godongwana’s speech?
Tax Relief for Individuals and Small Businesses
According to Bloomberg, Individual taxpayers are among the key beneficiaries. Government scrapped plans to raise an additional R20 billion in taxes after revenue exceeded expectations, largely driven by the commodities boom.
Personal income tax brackets and medical tax credits will be adjusted for inflation – the first such relief in three years.
Capital gains tax and donations tax exemption thresholds have also been raised, along with contribution limits for tax-free savings accounts and retirement funds.
Small businesses will benefit from an increase in the capital gains tax exemption threshold on asset disposals, which rises to R15 million – a 50% increase on the previous limit.
The VAT registration threshold will also be lifted, and turnover taxes for micro businesses adjusted for inflation.
Infrastructure and Security Boost
The budget provides R1.07 trillion for infrastructure investment over the next three fiscal years, targeting logistics, energy, water and sanitation projects.
With capacity constraints in parts of government and state entities, the allocation is expected to unlock contracting opportunities in the construction sector.
Police and military services have each been allocated an additional R1 billion to strengthen efforts against organised crime.
Treasury also indicated that the borrowing requirement has declined “markedly” compared with last year, and that the budget deficit is projected to be slightly lower than previously forecast – developments likely to be welcomed by investors and bondholders.
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Higher Levies for Consumers
However, consumers will feel the impact of higher indirect taxes.
Excise duties on alcohol and tobacco will increase by 3.4% from 1 April.
- A 340ml can of beer or cider will increase by 8 cents
- A 750ml bottle of wine will rise by 15 cents
- A 750ml bottle of spirits will increase by R3.20
- The excise tax on a pack of 20 cigarettes will rise from R22.81 to R23.58
- Pipe tobacco will increase by 28 cents per 25 grams
- Cigarette tobacco will increase by 87 cents per 50 grams
- Cigars will rise by R4.56 per 23 grams
Fuel levies will also rise, with taxes on a litre of 93-octane petrol increasing by 21 cents to R6.58, including adjustments to the general fuel levy, carbon fuel levy and Road Accident Fund levy.
- The general fuel levy will increase by 9 cents per litre for petrol and 8 cents per litre for diesel
- The carbon fuel levy will rise by 5 cents per litre for petrol and 6 cents per litre for diesel
- The Road Accident Fund levy will increase by 7 cents per litre
While lower international oil prices may cushion the impact at the pump, this remains uncertain.
Pressure on Municipalities
In a move aimed at improving revenue collection, state power utility Eskom will take over electricity distribution in municipalities that fail to settle their debts.
Treasury said the measure is necessary to protect service delivery and financial stability.
Municipal arrears to Eskom have climbed to R85.2 billion among municipalities participating in the Municipal Debt Relief Programme.
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