The South African Budget Speech 2026
Introduction
South African Minister of Finance, Enoch Godongwana, delivered his annual budget speech on 25 February 2026. Following controversy in 2025 when this event had to be postponed because of resistance to a proposed increase in the VAT rate, this year’s event proceeded without any such incident.
The mood of the presentation was more positive than in recent years with the Minister noting, among other things, that South Africa (SA) has been removed from the FATF grey list, secured its first credit rating update in 16 years and that borrowing costs have eased.
No increase in personal and corporate taxes was announced with the budget documentation highlighting that SA taxes are high by international standards and that a large portion of total income tax is paid by a relatively small number of taxpayers. It is stated that beyond a certain point, increases in tax rates may not generate additional revenue and are detrimental to economic growth. Ultimately (so the commentary continues) the best option to increase revenue is by broadening the tax base and growing the economy.
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Disclaimer
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