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Finance Minister Enoch Godongwana tabled the 2026 Medium-Term Budget Policy Statement (MTBPS) on 21 October 2026. He announced temporary fuel levy relief costing R10 billion and an upward revision of R17.1 billion to the 2026/27 revenue estimate. AW's preview of the MTBPS ran on 20 October 2026.
What changed
Fuel levy relief (as announced in the Minister's speech and reported by Polity, EWN, BusinessTech and Sabinet):
Polity reports the relief is funded by returning R10 billion transferred to the Central Energy Fund to the National Revenue Fund. Treasury has cut its expected fuel levy collection for 2026/27 by R30 billion, which includes lower fuel use.
Revenue. SARS says the revised revenue estimate is R2.144 trillion, up from R2.127 trillion in the February 2026 Budget. SARS attributes the increase mainly to:
corporate income tax, up R11.7 billion;
domestic VAT, up R2.5 billion; and
customs duties, up R2.2 billion.
SARS's net revenue to 30 September 2026 was R992.2 billion, R15.5 billion above the February estimate. The revenue outlook excludes the fuel levy relief.
Growth, deficit and debt. Real GDP growth for 2026 was revised down from 1.6% to 1.2% (SARS and the Minister's speech). The Minister said the deficit for 2026/27 will narrow to 3.9% of GDP, against 4.0% forecast in February, and fall to 2.5% of GDP by 2030. Debt-to-GDP stabilised at 78.4% in 2025/26 (Sabinet).
Legislation. EWN reports that draft fiscal anchor legislation and an amended Municipal Finance Management Act were released for public comment. Sabinet reports that the fiscal anchor bill is expected in Parliament in 2027.
Who it affects
Motorists, transport and logistics businesses, and businesses that claim diesel refunds. The revised estimates affect anyone forecasting tax collections or public spending.
What this means for accountants and finance professionals
Fuel cost budgets for November and December 2026 should reflect the two steps of relief.
Diesel refund claimants should check how the lower levy affects refund calculations for the relief period.
Apart from the fuel levy relief, the Minister's speech announced no new tax measures. Treasury says the online gambling tax design will be announced in the February 2027 Budget (Sabinet).
The three tax bills introduced on the same day are covered in Accounting Weekly’s SARS updates.
Key dates
What to do
Update client fuel cost forecasts for November 2026 to January 2027.
Review diesel refund calculations for the relief period.
Read the MTBPS documents on the National Treasury site for figures not covered here.
Sources: Minister's MTBPS speech, 21 October 2026, SARS media release, 21 October 2026, Polity, 21 October 2026, EWN, 21 October 2026, BusinessTech, 21 October 2026, Sabinet