South Africans are set to pay more for tobacco products, alcoholic beverages and fuel, as Finance Minister Enoch Godongwana announced what he calls “unavoidable tax increases for 2026/27 during his budget speech this afternoon. But there is also good news for grant beneficiaries and on the personal income tax front.

Here are the direct financial impacts of the 2026 National Budget on South Africans — focusing on changes that influence household income, expenses and everyday costs.

1. Personal Income Tax: Slight Relief

Government adjusted personal income tax brackets and rebates fully in line with inflation. This prevents “bracket creep,” where salary increases push taxpayers into higher tax brackets without real income growth.

What it means for you:

• Most taxpayers avoid an effective tax increase.
• Take-home pay is slightly protected against inflation.
• No broad-based new personal tax hikes were introduced.

2. Fuel Costs Will Rise

Fuel levies increase in line with inflation:

• General fuel levy: +9 cents per litre (petrol), +8 cents (diesel)
• Carbon fuel levy: +5–6 cents per litre
• Road Accident Fund levy: +7 cents per litre

What it means for you:

• Petrol and diesel prices increase.
• Transport costs rise.
• Knock-on effects likely on food prices and delivery costs.

3. Alcohol and Tobacco Become More Expensive

Excise duties increase:

• Beer/cider (340ml): +8 cents
• Wine (750ml): +15 cents
• Spirits (750ml): +R3.20
• Cigarette taxes increase by 77c for a pack of 20, raising retail prices.

What it means for you:

Higher retail prices for alcohol and tobacco products.

4. Social Grants Increase

From April 2026:

• Old age, disability and care dependency grants: increase to R2,400 (+R80)
• War veterans grant: R2,420 (+R80)
• Foster care grant: rises to R1,290 in April (and R1,300 in October)
• Child support grant: increases to R580 (+R20)
• Social Relief of Distress (SRD) grant continues for another year.

What it means for households:

• Slight income support boost for grant recipients.
• Helps offset rising living costs for vulnerable households.

5. Savings and Retirement: More Tax-Free Investing

Government increased tax-free savings incentives:

• Tax-free investment annual limit: R36,000 → R46,000
• Retirement fund tax deduction limit: R350,000 → R430,000

What it means for you:

• Higher-income and middle-income earners can save more without paying tax.
• Encourages long-term retirement savings.

6. Small Business Relief

Key changes affecting entrepreneurs:

• VAT registration threshold increases from R1 million to R2.3 million turnover.
• Capital gains tax exemption on qualifying small business sales rises from R1.8 million to R2.7 million.

What it means:

• Smaller businesses face less compliance pressure.
• Potentially improved cash flow and easier business growth.

7. Public Services That Affect Household Costs

Health

Additional funding for doctors and HIV/AIDS programmes aims to stabilise public healthcare services.

Impact: Reduced risk of staffing shortages and service disruption in public hospitals.

Education

Funding increases for early childhood development and school nutrition programmes.

Impact: Continued school meals and expanded early learning access reduce pressure on low-income households.

8. Municipal Services and Infrastructure

Government is tying funding to performance in water, electricity and sanitation services, with billions allocated to improve municipal infrastructure.

Impact over time:

• Intended to improve service delivery.
• May reduce infrastructure failures affecting electricity and water reliability.

9. Transport and Rail

Funding continues for passenger rail recovery to rebuild commuter train services, although some bus transport funding has been reduced due to poor performance.

Impact:

• Possible long-term improvement in rail commuting.
• Slower expansion of some city bus systems.

10. No Major New Taxes

Government withdrew previously planned tax increases worth R20 billion due to stronger revenue collection.

What this means: Households avoid additional broad tax pressure in 2026.

The Cape’s waters continue to face the destructive impact of illegal fishing, as law enforcement officials intensify efforts to protect marine life.

The Environmental Unit made a significant arrest in Bishop Lavis yesterday, which led to the arrest of a 35-year-old man.

The City’s Law Enforcement spokesperson, Wayne Dyason, says while patrolling the area, officers stopped a male suspect who appeared nervous.

“They asked if he stays at the property he was about to enter to which he replied yes. They then asked if they could enter the premises and he gave permission and escorted the members into the house. When entering the house the members got a fishy smell and asked the male if he is selling fish. He replied, no.”

Dyason says that upon inspection, the officers found fridges in a room filled with blue bags containing West Coast Rock Lobster Tails.

The 35-year-old suspect was arrested and taken to Bishop Lavis police station.

“He was charged for the illegal possession of 3162 West Coast Rock Lobster Tails.”

Earlier that same morning, the Marine and Environmental Unit assisted the Department of Forestry, Fisheries and the Environment (DFFE) and SANParks in a major operation in the closed Marine Protected Area at Brightwaters and Olifantsbos in the Cape of Good Hope Nature Reserve.

“Four vessels were confiscated, and ten fishermen were arrested for illegal crayfish harvesting,” Dyason added.

This is not the first time the Cape’s marine life has been targeted. A similar operation on 21 January 2026 at Vangate Mall saw authorities confiscate illegally caught West Coast Rock Lobster and 1000 West Coast Rock Lobsters tails.

Concerns have been raised over the safety of cyclists, with just days left before the upcoming Cape Town Cycle Tour, following a supposed attempted hijacking in Constantia.  

According to the Pedal Power Association, a cyclist travelling along Firgrove Road, toward Constantia Uitsig, at around 06:00 on Sunday morning, was targeted by occupants of a vehicle in what has been described as an aggressive incident.

The organisation said a white Toyota Venture allegedly attempted to force the cyclist off the road twice before the rider managed to escape by turning into a side road and finding safety.  

“The cyclist cycled to Constantia Uitsig because they have security there and waited for other cyclists. He joined a group who said that they had just had the same experience also in Firgrove Road,” read a post shared on the association’s “Stay Wider of the Rider” campaign Facebook page.  

While the association advised that the authorities were alerted to the incident, Western Cape police said no formal complaint had been recorded. 

“Be advised that this office has no record of this matter,” said Captain F.C Van Wyk in response to SmileFM’s query.  

The PPA’s CEO, Neil Robinson, said he’s aware of several cyclists who have been targeted, especially those travelling alone during the early morning or at dusk in the evening.  

“We’ve had a few instances of criminals targeting cyclists, around stealing their bikes, getting their cell phones, etc. The criminals sadly know the value of the bicycles,” said Robinson.

There are about 10 days to go until the Cape Town Cycle Tour, and more cyclists have been seen out on the roads, so Robinson is urging riders in training to be vigilant and safe.  

“Ride in groups, if you can. The ultimate would be to have a support vehicle behind you. I know it’s not possible a lot of the time, but if you can, it’ll be great.”  

He highlighted that cyclists must be especially vigilant along known cycling routes.  

“In the high-frequency training areas like Spaanschemacht Road, around Tokai, Ou Kaapse Weg, Red Hill, Black Hill, all the areas that cyclists use to train prior to the Cape Town cycle tour, please be careful, be vigilant,” Robinson advised.  

The association also noted that cyclists should practice caution along other routes in Constantia, Hout Bay, the Peninsula loop, Victoria Road, as well as in the Durbanville and Philadelphia regions.  

“Please take care out there. We want to see you all on the start line,” said Robinson.  

Twelve people have been arrested in Maitland on various charges. The suspects, aged between 25 and 72 years, were taken into custody on Monday on charges of possession of a unlicensed firearm, illegal possession of ammunition and dealing in drugs. The arrests were carried out at a premises in Garden Village.

Twelve people have been arrested in Maitland on various charges

Members of the Police’s Anti-Gang Unit were deployed to Kensington, concerning ongoing gang violence and tracing operations. They then followed up information about firearms at a premises in Garden Village, in Maitland.

House searched in Maitland

Captain Frederick C. van Wyk says officers searched a house and found a .38 Special Taurus revolver with 11 rounds of ammunition. At the same time, they also discovered thirty sachets containing tik, six mandrax tablets and a R130 cash believed to be the proceeds of crime. He says they were arrested on the mentioned charges and will appear in the Cape Town Magistrates court soon.