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Balancing act appeases
The Citizen
|February 26, 2026
POSITIVE: PERSONAL INCOME BRACKETS, MEDICAL CREDITS ADJUSTED
MONEY MATTERS. Finance Minister Enoch Godongwana, centre, and commissioner of the SA Revenue Service Edward Kieswetter, right, arrive for the 2026 budget speech in Cape Town yesterday. Picture: Gallo Images
(Gallo Images)
Budget 2026 is a largely good-news one, notably due to personal income tax brackets and medical tax credits being adjusted for inflation for the first time in three years... and no major tax hikes.
Finance Minister Enoch Godongwana struck a notably optimistic tone in his budget speech in Cape Town yesterday - a sharp contrast to the turmoil that marked the three main budgets of 2025.
However, as the finance minister gave with one hand in not implementing a R20 billion tax hike, increasing social grants and making tax inflation adjustments, he took away with the other via increased sin taxes on alcohol and tobacco, as well as increases in all components of the fuel levy.
Government has remained true to its word to withdraw additional tax increases in the 2026 budget if collections perform in line with expectations.
The previously proposed R20 billion tax increase for the 2025-2026 tax year is off the table.
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