Budget 2026: Tax Outlook
The 2026/27 Budget scrapped R20 billion in proposed tax hikes from the 2025 plan, thanks to stronger collections in VAT, corporate, and dividends taxes. Gross revenue for 2025/26 rose R21.3 billion above prior estimates.Core Changes:
VAT threshold jumps from R1M to R2.3M (effective Apr 2026), easing admin for small firms. Voluntary threshold rises to R120k.1 3 PIT brackets/rebates fully inflation-adjusted (3.4%), reversing prior fiscal drag. Entry threshold now R99k (under 65).1 2 Tax-free savings limit: R36k → R46k . Retirement deductions: R350k → R430k .2 4
Small business CGT exit relief: R1.8M → R2.7M ; qualifying asset cap R10M → R15M .1
Fuel & Excise Hikes (Apr 2026):
Petrol/diesel: +21c/litre total (fuel levy +9/8c, carbon +5/6c, RAF +7c).3
Alcohol/tobacco: inflation-linked (e.g., beer +8c/can, spirits +R3.20).3
Business Implications: No broad hikes improve cash flow. Higher thresholds cut compliance; employee take-home pay rises without employer cost. Infrastructure spend hits R1T, boosting supply chains.5
Quick Actions:
Recalculate VAT status; assess deregistration if under R2.3M.
Update payroll for new PIT tables; max new savings limits.
Model fuel/excise into costs/pricing.
Check SARS compliance (e.g., tax refs for EMP501).
Scan infra tenders via BFI/PPP (63 projects active).
Growth forecast: 1.6% (2026), debt at 78.9% GDP. Lower rates aid borrowing. Expect tighter SARS audits via Project AmaBillions.
