No major tax hikes? Finance Minister Godongwana hints at 2026 Budget plans
Minister of Finance Enoch Godongwana says there will be no major tax increases.
Image: Armand Hough / Independent Newspapers
As anticipation builds among South Africans ahead of next month’s budget, Minister of Finance Enoch Godongwana says there will be no major tax increases.
Godongwana is set to deliver the 2026 budget on February 25. IOL previously reported that the National Treasury said the upcoming budget will focus on balancing economic growth with support for vulnerable households, while also addressing the country's debt sustainability and ensuring the efficient use of public resources.
Last year, the budget was postponed two times, largely due to disagreements within the Government of National Unity over a controversial proposed 2% Value-Added Tax (VAT) increase, which had sparked outrage among South Africans, leading to the proposed increase ultimately being scrapped. This time around, however, Godongwana reassured the public that the 2026 budget would proceed without delays.
The Minister said the upcoming budget will not have any major new tax measures, signalling a focus on fiscal consolidation.
"My team at National Treasury is always advising me not to raise expectations or do anything before the budget. But by and large, overall, it's not something we intend to make major, substantial taxes," Godongwana said in an interview with Bloomberg Television.
He added that the focus would remain on structural reforms aimed at stabilising the economy and creating a foundation for sustainable growth.
"The fiscal consolidation is a necessary but insufficient condition for growth. But it is necessary. Without fiscal consolidation, it's difficult to achieve all other associated growth-enhancing policies. In that sense, there's that tension."
"You have got to maintain fiscal consolidation, but at the same time, parallel to that, drive some growth-enhancing reforms. Is it trickier than before because of the need to rethink growth? It's trickier in the sense that there are a number of kinds of puzzles in the game," the Minister added.
mthobisi.nozulela@iol.co.za
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