Treasury raises revenue forecast and announces temporary fuel-levy cuts

South Africa’s medium-term budget policy statement, delivered on 21 October 2026, revised projected gross tax revenue for 2026/27 upward by R17.1 billion from the February estimate. It also announced temporary reductions in diesel and petrol levies, which the government described as R10 billion in support at a fiscal cost of R10 billion in foregone revenue.

Revenue estimate revised upward

The statement attributes the higher gross tax revenue estimate to stronger collections from corporate tax, dividends tax and VAT. The R17.1 billion figure is an upward revision to projected revenue for 2026/27 compared with the February estimate.

Fuel-levy relief has two phases

From 4 November through 1 December 2026, the announced levy reductions are R3 per litre for diesel and R1.50 per litre for petrol. A smaller reduction is then set to continue until 5 January 2027: R1.50 per litre for diesel and R1 per litre for petrol.

The government puts both the support provided by the measure and its cost in foregone revenue at R10 billion. That figure places the temporary levy reductions alongside the revised revenue outlook as a material element of the budget statement.