A boost in tax revenue has given the National Treasury scope to introduce the first inflation-linked tax relief since the 2023/24 financial year.
Finance Minister Enoch Godongwana said revenue for the current financial year is expected to exceed earlier projections, supported by stronger Value-Added Tax collections and higher platinum and gold prices.
Tabling the 2026 Budget in Parliament in Cape Town, Godongwana said improved revenue performance enabled government to scrap R20 billion in planned tax increases.
“The improving fiscal position allows us enough room to withdraw the proposed tax increases without putting fiscal sustainability or economic activity at risk. We are also proposing additional tax measures to ease the financial burden on households and businesses by adjusting personal income tax brackets and rebates fully in line with inflation,” he said.