Des Erasmus
Treasury will not introduce new personal income tax increases, but it will raise excise duties and fuel levies in line with inflation in the 2026/27 fiscal year, Finance Minister Enoch Godongwana said on Wednesday during his budget speech.
Godongwana said government would ease pressure on households and businesses by “adjusting personal income tax brackets and rebates fully in line with inflation”.
But, he said, “increases to certain taxes are unavoidable”.
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“Excise duties on tobacco will be increased in line with inflation” he said.
“In terms of fuel levies, the total increase will also be in line with inflation.”
The tax on a 20-pack of cigarettes will increase from R22.81 to R23.58, while a 750 millilitre bottle of spirits will increase by R3.20.
The general fuel levy will increase by 9 cents per litre for petrol and 8 cents per litre for diesel.
The Road Accident Fund levy will increase by 7 cents per litre, said Godongwana.
