DA Calls for Tax Relief and Incentives for Savers Ahead of Budget 2026

The Democratic Alliance (DA) has set out a firm set of expectations ahead of tomorrow’s budget, warning that South Africans cannot endure another year of rising tax pressure.

In a statement released this week, DA finance spokesperson Dr Mark Burke said the budget “must see adjustments in tax brackets and rebates in line with inflation”, arguing that failure to do so would amount to stealth tax increases. He added that the party expects no hikes in personal income tax, corporate tax, or VAT, insisting that “the conversation needs to move from what taxes will be raised to which taxes will be reduced”.

Burke said the Treasury must honour its commitment, from the previous Medium-Term Budget Policy Statement, that the debt-to-GDP ratio would begin to decline. He warned that debt service costs are consuming 22 cents of every rand collected, crowding out spending on health, education, and policing. The DA also expressed concern about growing state-owned enterprise liabilities, noting that Transnet received a further R145.8 billion in debt guarantees last year.

The party also wants tax policy to better support small businesses and entrepreneurs through lower administrative burdens and targeted support. It backs calls from the financial services sector to raise annual and lifetime limits on tax-free savings accounts, arguing that high household debt and weak emergency buffers require stronger savings incentives.

Finally, the DA urged the finance minister to direct more resources toward combating the illegal cigarette and alcohol trade, saying the state cannot rely on sin taxes while failing to clamp down on illicit cartels.