In his 2026 National Budget Speech delivered on today (25 February 2026), Finance Minister Enoch Godongwana highlighted significant increases in social grants alongside modest tax adjustments on certain consumer goods — particularly alcohol and cigarettes.
South Africa’s social grant system received a strong budget allocation of R292.8 billion for 2026/27 to help vulnerable households. Major grants were increased from April 2026 as follows:
Old Age & Disability Grants: From R2 315 to R2 400
War Veterans Grant: From R2 335 to R2 420
Foster Care Grant: From R1 250 to R1 295
Care Dependency Grant: From R2 315 to R2 400
Child Support & Grant-in-Aid: From R560 to R580
These increases aim to help beneficiaries cope with rising living costs.
While Godongwana avoided broad new tax hikes such as higher personal income tax, he confirmed that excise duties on alcohol and tobacco will rise in line with inflation for 2026/27. These so-called “sin taxes” are annual adjustments intended both to raise revenue and discourage harmful consumption.
Under the 2026 changes:
Tobacco
A 20-pack of cigarettes: tax rises from R22.81 to R23.58
Pipe tobacco: up by 28 c per 25 g
Cigarette tobacco: up by 87 c per 50 g
Cigars: up by R4.56 per 23 g
Alcohol
Beer / Cider (340 ml can): up 8 c
Wine (750 ml): up 15 c
Spirits (750 ml): up R3.20 These increases will take effect from 1 April 2026 and are broadly in line with inflation forecasts, meaning they are not larger than expected but still push up consumer.
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