The government will withdraw previously proposed tax increases – Cyril Ramaphosa

President Cyril Ramaphosa said that the government will support economic growth by withdrawing previously proposed tax increases for the current financial year.

However, he did not clarify which proposed tax increases will be withdrawn and whether they have already been announced by the Minister of Finance.

Ramaphosa shared this information in response to a parliamentary question about South Africa’s rising cost of living.

He was asked what measures he and the Cabinet would implement to address inadequate wages, rising prices, and broader socio-economic pressures in South Africa.

The President responded, saying the government’s strategy for addressing these concerns will focus on maintaining macroeconomic stability.

It will also implement structural reforms, boost state capacity, and raise public infrastructure investment.

“To execute this, the government will support economic growth by withdrawing previously proposed tax increases for 2026/27 while accelerating public investment,” he said.

Ramaphosa did not provide further details on which previously proposed tax increases will be withdrawn in this financial year.

It is also possible that the President was referring to previously proposed taxes, which have already been withdrawn in the latest budget.

“The 2026 Budget tax proposals provide individual taxpayers with full relief for the effects of inflation and raise various tax thresholds,” he said.

“These measures allow households and businesses to retain a larger share of their income, supporting the economic recovery.”

Apart from the tax breaks, he said that the National Minimum Wage was increased by 5% from 1 March 2026, which is higher than the inflation rate.

“The value of social grants has also increased by rates that are above inflation,” Ramaphosa added.

The President said that, in the short term, the government has been intervening by implementing measures to provide some relief on the general fuel levy.

“This will also help address concerns of higher inflation and negative impacts on economic growth due to increasing fuel prices,” he said.