Finance Minister Enoch Godongwana on Wednesday presented the budget, outlining measures intended to support households while maintaining stability in the country’s public finances
Image: Armand Hough / Independent Newspapers
Finance Minister Enoch Godongwana on Wednesday presented the 2026 National Budget, outlining measures intended to support households while maintaining stability in the country’s public finances.
The Budget included the withdrawal of the previously proposed R20 billion in tax increases and adjustments to personal income tax brackets to account for inflation. Social grants also received increases. Old-age and disability grants rise to R2,400, the war veterans grant to R2,420, and the child support grant to R580.
However, some household costs are also set to rise from April 1, 2026. Petrol and diesel will see a total fuel levy increase of 21 cents per litre, including hikes to the General Fuel Levy (GFL), Carbon Levy, and the Road Accident Fund (RAF) levy, bringing GFL costs to R4.10 for petrol, and R3.93 for diesel, while the RAF levy rises to R2.25.
Excise duties on alcohol and tobacco will also climb, with cigarettes rising by 77 cents to R23.58 a pack, beer by 8 cents per 340ml can, wine by 15 cents per 750ml bottle, and spirits by R3.20 per bottle.
Experts say the measures may provide some relief for households, but the impact will depend on how people manage their money.
Hayley Parry, Money Coach at 1Life’s Truth About Money, said the measures protect take-home pay but do not automatically improve financial well-being.
“This gives consumers breathing room — but breathing room is not the same as financial progress. The smart move now is to use this stability to reduce debt or build up your emergency fund, not expand lifestyle costs.” Parry said.
She added that households that take advantage of the tax relief and grant increases can use the opportunity to strengthen their financial position.
“For households relying on social grants, every rand matters. Even small increases can make a meaningful difference — especially when supported by accessible financial tools, fair credit options and practical financial education.”
Tando Ngibe, Senior Manager at Budget Insurance, said that while the Budget offers some relief, everyday costs will still put pressure on households.
"That said, everyday pressures are not disappearing. Fuel levies will increase by a combined 9 cents per litre for petrol, alongside higher RAF and carbon levies, and excise duties on alcohol and tobacco will rise in line with inflation." Ngibe said.
"These adjustments may look small individually, but over a year, they filter into transport, food and delivery costs. While social grants, including the old age grant rising to R2,400, provide support for vulnerable households, most working families will still need to manage tight monthly margins carefully."
Adrian Hope-Bailie of Fynbos Money said the increase in the annual tax-free savings account (TFSA) contribution limit from R36,000 to R46,000 was a significant boost for South Africans looking to grow their savings.
"This long-awaited adjustment, the first in six years, is a critical step in helping South Africans protect their wealth from inflation. By allowing an additional R10,000 in tax-free contributions annually, the government is providing a significant boost to the power of compounding in TFSA accounts."
"Investors can now reach their R500,000 lifetime contribution cap roughly three years faster, allowing their capital more time to grow, entirely shielded from taxes on dividends, interest, and capital gains."
IOL BUSINESS