From 1 April 2026, the VAT threshold increases to R2.3 million. Many small businesses will immediately qualify to deregister. But what looks like a simple compliance decision can quickly become an expensive mistake. When a vendor deregisters, SARS treats certain assets as if they were sold, which means output VAT may suddenly become payable. Before recommending deregistration, accountants should understand the hidden traps.

Budget 2026: Did CIBA Move the Needle?

When CIBA argued for broader participation instead of higher tax rates, many expected another year of increased pressure on compliant taxpayers. Instead, Budget 2026 withdrew proposed tax hikes, restored full inflation relief, and significantly raised the VAT threshold for small businesses.

This is not just policy housekeeping. It signals a shift toward growth, stability and SME breathing room.

What did CIBA ask for? What did government deliver? And where does reform still need to go?

Here’s the straight comparison - proposal versus outcome -and what it means for practitioners on the ground.

Budget 2026: Relief, Reality… and a Bigger Question

South Africa’s latest Budget promises debt stabilisation, infrastructure investment and long-awaited tax relief. But beneath the headline numbers lies a bigger story: a narrow tax base, rising debt costs and an economy still searching for momentum. Will this Budget truly unlock growth, or are we simply buying time? Here’s what changes, what it means for your pocket, and what it signals for the country’s economic future.