Finance minister Enoch Godongwana says to cushion citizens from the rising cost of living, social grants will be increased above inflation.
He announced on Wednesday that the VAT rate would be increased to 16% by 2026/2027.
“Government is very aware of the cost-of-living pressures faced by households, including high food and fuel prices and rising electricity and transportation costs. This is why we are taking concrete steps to protect vulnerable households,” said Godongwana.
“This is done through providing social grant increases that are above inflation. Expanding the basket of VAT zero-rated food items to include canned vegetables, dairy liquid blends, and organ meats from sheep, poultry and other animals. We are also not increasing the fuel levy for another year, saving consumers about R4bn.”
He said social grants will increase, with old age and disability grants rising by R130, child support grants by R30 and foster care grants by R70. The social relief of distress grant that was introduced during the Covid-19 pandemic has been extended by a year to end in March 2026, with R35.2bn allocated for this. Godongwana said the future form and nature of the grant will be informed by the outcome of the review of active labour market programmes.
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Social grants to be increased above inflation – Godongwana
Image: Esa Alexander
Finance minister Enoch Godongwana says to cushion citizens from the rising cost of living, social grants will be increased above inflation.
He announced on Wednesday that the VAT rate would be increased to 16% by 2026/2027.
“Government is very aware of the cost-of-living pressures faced by households, including high food and fuel prices and rising electricity and transportation costs. This is why we are taking concrete steps to protect vulnerable households,” said Godongwana.
“This is done through providing social grant increases that are above inflation. Expanding the basket of VAT zero-rated food items to include canned vegetables, dairy liquid blends, and organ meats from sheep, poultry and other animals. We are also not increasing the fuel levy for another year, saving consumers about R4bn.”
He said social grants will increase, with old age and disability grants rising by R130, child support grants by R30 and foster care grants by R70. The social relief of distress grant that was introduced during the Covid-19 pandemic has been extended by a year to end in March 2026, with R35.2bn allocated for this. Godongwana said the future form and nature of the grant will be informed by the outcome of the review of active labour market programmes.
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