ANC expects Godongwana to do away with raising taxes in 2026 budget

The African National Congress (ANC) expects Finance Minister Enoch Godongwana to retract previous announcements to raise taxes when he tables the 2026 budget in Parliament on Wednesday.

After his hand was forced by political parties to withdraw a planned value-added tax (VAT) increase a year ago, Godongwana indicated that tax hikes may still be necessary this year if revenue doesn’t meet spending demands.

But his own party wants to see the opposite, and for him to bring some relief to personal income tax by adjusting brackets in line with inflation.

It’s widely expected that Godongwana won’t be making any surprising tax moves this year, after the backlash he received last year that resulted in him delaying the budget tabling by three months.

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The ANC said it expects him to announce that revenue has improved, thanks to improved capacity at the South African Revenue Service (SARS) to ensure stronger tax compliance rather than to further burden the working class.

Luthuli House said protecting the social wage remains paramount with more than 60% of consolidated spending going towards health, education, social protection and employment programmes.

Government has already announced that the Social Relief of Distress (SRD) grant will continue into 2027, while a plan to convert it into a basic income grant is still awaited.

The ANC said it anticipates that the redesign of this grant will strengthen access to skills development and economic participation.

The party further believes the country is standing at a distinct point where stability is returning and confidence is growing.

This year’s budget, said the ANC, must now convert this stability into faster growth, more jobs and functional municipalities.