Stop Squeezing the Same Lemon: Why Growth — Not Higher Taxes — Must Anchor Budget 2026
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As South Africa prepares for Budget 2026, the Chartered Institute for Business Accountants (CIBA) urges National Treasury to prioritise growth-led fiscal reform over additional pressure on an already narrow tax base.
With economic growth projected at only 1.3–1.4% in the near term and fiscal deficits still elevated, the need for revenue stability is clear. However, CIBA cautions that increasing tax rates or intensifying enforcement on compliant taxpayers will not resolve South Africa’s structural fiscal challenges.
CIBA’s pre-Budget submission makes a clear and practical case : South Africa does not primarily have a tax rate problem. It has a growth problem, a compliance design problem, and a tax morale problem.
CIBA’s formal pre-Budget submission outlines a framework of structural reforms aimed at expanding the tax base sustainably rather than extracting more from the same compliant minority.
Expanding the Tax Base Through Growth and Formalisation
CIBA calls for updated VAT, turnover tax and Small Business Corporation thresholds to reflect current economic realities. Many small enterprises exceed existing thresholds before achieving sustainable profitability, resulting in premature exposure to full compliance burdens.
Phased compliance mechanisms for very small enterprises and expanded simplified tax regimes would encourage formalisation and support long-term revenue expansion.
Reducing Compliance Friction for SMEs and NPOs
SMEs and non-profit organisations face disproportionately high administrative burdens relative to their capacity. CIBA recommends harmonised reporting frameworks, simplified filing systems and proportionate, risk-based oversight models to reduce unnecessary duplication.
Lower compliance friction improves formal participation and reduces the cost of enforcement.
Improving Administrative Efficiency and Regulatory Coherence
Delays in approvals, inconsistent regulatory interpretation and fragmentation across departments undermine business confidence and investment. CIBA urges the introduction of service-level standards and improved interdepartmental coordination to reduce regulatory uncertainty.
Administrative efficiency is not merely operational — it is a growth enabler.
Strengthening Tax Morale Through Accountability and Fairness
Sustainable revenue collection depends on voluntary compliance. CIBA recommends a visible shift toward risk-based, high-impact enforcement focused on systemic revenue leakages rather than low-value disputes.
Greater transparency in public expenditure reporting will also reinforce taxpayer confidence and strengthen the social contract.
Aligning Fiscal Policy With Long-Term Growth Objectives
CIBA emphasises that tax policy must support job creation, enterprise development and institutional sustainability. Revenue stability is achieved through expanding economic participation, not through short-term extraction measures that may suppress growth.
Budget 2026 presents a strategic choice. South Africa can either intensify pressure on a narrow base, or implement reforms that expand participation, strengthen trust and support long-term fiscal sustainability.
CIBA remains committed to constructive engagement with National Treasury and other stakeholders to ensure that fiscal policy supports economic growth, institutional accountability and inclusive development.
Read CIBA’s 2026 Pre-Budget submission here.
🔴 LIVE: 2026 Budget Speech Viewing & Expert Analysis
Understand the Budget as it happens. Know what to do next.
On 25 February 2026, South Africa’s National Budget Speech will set the tone for tax, compliance, and economic decision-making in the year ahead. CIBA invites you to a live Budget Speech Viewing & Expert Analysis Event, designed specifically for finance professionals who cannot afford to “wait and see” what it means.
Join us for a real-time viewing of the Budget Speech, streamed directly from Parliament, with live expert commentary translating policy announcements into clear, practical implications for your practice and your clients.
You will hear expert insights from Johan Heydenrych, Ettiene Retief, and Dr Frederich Kirst, as the Budget unfolds — not weeks later.
Whether you advise clients, manage tax risk, or lead financial decisions, this session helps you move from policy to action immediately. The event concludes with a cocktail networking session for in-person attendees.
📍 Venue: CSIR International Convention Centre, Pretoria
🕐 Time: 13:00 – 16:00 (Cocktails from 16:00)
💻 Attendance: In-person or Online
🎟️ Limited seats available
IN-PERSON: Register here
ONLINE: Register here
Don’t just hear the Budget. Understand it. Apply it.
