South Africans already ‘deeply overtaxed’: DA urges tax relief and SOE debt halt in Budget 2026
Finance Minister Enoch Godongwana is expected to table Budget 2026, with the DA urging him to avoid tax hikes, tackle SOE debt, and prioritise spending on health, education, and security.
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The Democratic Alliance (DA) says South Africans are “deeply overtaxed” and has warned that Budget 2026 must not introduce any new tax increases, calling instead for inflation-linked tax bracket adjustments and a shift towards tax relief.
DA finance spokesperson Mark Burke said the party expects National Treasury to avoid raising personal income tax, corporate tax or VAT when Finance Minister Enoch Godongwana tables the national budget.
“Budget 2026 must see adjustments in tax brackets and rebates in line with inflation,” Burke said.
“We can’t afford another year of stealth taxes, and we definitely can’t afford explicit increases.”
He added: “As such, the DA expects that there will be no personal income or corporate tax hikes and definitely no VAT increases.”
Burke argued that the country’s fiscal conversation should move away from revenue increases and toward easing the burden on taxpayers.
“Soon, the conversation needs to move from what taxes will be raised to which taxes will be reduced,” he said.
The DA also called on Treasury to honour its commitment made in the 2025 Medium-Term Budget Policy Statement to stabilise and reduce the debt-to-GDP ratio in the coming financial year.
“The DA expects the Treasury to meet its commitment from the last MTBPS where the debt-to-GDP ratio for the coming year is set to decline, rather than rise as it has been doing since 2008,” Burke said.
He warned that debt-service costs are crowding out frontline spending.
“This is crucial because our country spends 22 cents of every rand on debt-service costs that are now crowding out health, education and police spending.”
The party expressed concern about rising state-owned entity (SOE) liabilities, singling out Transnet’s recent support package.
“The DA is deeply concerned by the burgeoning SOE debt, and this must be halted,” Burke said, noting that “last year, Transnet alone was given another R145.8 billion in debt guarantees.”
Burke also pressed Treasury for updates on spending reforms announced last year.
“How many ghost workers have been identified, their salaries frozen and criminal charges laid?” he asked.
“Which further programmes are not adding value, where tax revenue can be saved?”
He warned against what he described as politically motivated spending. “We cannot afford to protect ANC pet projects that cost billions but deliver very little.”
On tax policy, the DA called for reforms aimed at supporting small businesses and encouraging savings.
“The tax system should be used to stimulate and encourage commerce, through targeted support and lower requirements in tax administration,” Burke said.
He added that tax-free investment savings accounts should be strengthened.
“Tax-free investment savings accounts are a critical tool to encourage healthy household reserves, and the DA supports the call from the financial services sector for increased thresholds, both in annual and lifetime contributions.”
“South African households are characterised by high debt and low emergency buffers. We need to more strongly incentivise savings,” he said.
The DA further urged the government to clamp down on the illicit economy, arguing that revenue collection is undermined by illegal trade.
“We cannot hope to collect sufficient sin taxes when the state is failing to fight illegal cigarette and alcohol cartels,” Burke said.
Burke said the party hopes the minister “tables a budget that is fair and sensible in its first iteration, so that we can demonstrate that South Africa is now firmly committed to fiscal responsibility.”
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