Last night, Finance Minister Enoch Godongwana stepped up to the podium to deliver the 2026 Budget Speech. Between the big numbers, the political jargon, and time it takes to get through it all, it can be a challenge to figure out what actually matters.

We watched the speech, took the notes, and did the math - so you don’t have to. Here are 5 key takeaways for you and your independent business.

1. A massive win for small business: The VAT threshold is up

This is the headline we’ve been waiting for. For the first time since 2009, the compulsory VAT registration threshold has been increased from R1 million to R2.3 million.

Why it matters: If your turnover is under R2.3 million, you no longer have to deal with the administrative headache (and the price hike for your customers) that comes with being a VAT-registered vendor. This will allow you to keep your prices competitive for longer while you grow your business.

2. Planning an exit? Capital Gains relief is here

If you’ve been building your business for years with the hope of retiring or moving on to your next big idea, the Minister had some good news. The Capital Gains Tax (CGT) exemption for the sale of a small business for those over 55 is moving from R1.8 million to R2.7 million.

The fine print: This now applies to businesses valued at up to R15 million (previously R10 million). It’s the government’s way of rewarding the long game that independent owners play.

3. No Bracket Creep (aka more money in pockets)

In a move that surprised many, the government is adjusting personal income tax brackets and rebates fully in line with inflation. They also withdrew the R20 billion in tax increases that were previously threatened.

Why it matters: When people have more take-home pay, their disposable income increases, which means that they have more to spend. This inflation-proofing helps keep consumer spending steady, which is the lifeblood of the local economy.

4. Encouraging the hustle with higher savings limits

The Minister is pushing for a culture of saving, with the tax-free annual investment limit jumping from R36,000 to R46,000.

Why it matters: As an entrepreneur, you don't always have a corporate pension fund backing you up. This increase allows you to put more of your hard-earned profit into tax-free growth, helping you build that safety net, or even an opportunity fund, faster.

5. The Sin Tax and fuel hike

It wouldn't be a budget speech without some increases. Excise duties on alcohol and tobacco are up by inflation (about 8c on a can of beer and 15c on a bottle of wine). Fuel is also going up by about 9c/l for petrol and 8c/l for diesel from April.

The Yoco tip: These small increases in fuel and sin taxes often eat into margins and delivery costs. Now is a great time to look at your pricing strategy. Even a small adjustment can help you absorb these costs without losing your shine.

The Bottom Line

This year’s budget speech felt like a "support the backbone" moment. By raising the VAT threshold and easing the tax burden on individuals, the goal is clearly to keep the wheels of independent businesses turning.

These changes are a direct tailwind. With more cash in your customers’ pockets and less red tape around VAT for your growing business, the friction of doing business just eased. Most importantly, it means you can focus less on the paperwork and more on the people-work: hustling, creating, and connecting with your community.

We’ve always known that independent businesses are the engine of South Africa. It’s heartening to see a budget that acknowledges this. The road ahead looks brighter, and we’re right there in your pocket (and on your counter) for every step of the journey.

The TL;DR

• If your turnover is less than R2.3m you don’t need to be VAT registered.

• Capital Gains Tax exemption for the sale of a business is raised to R15m.

• Personal income tax brackets have been fully adjusted to be in line with inflation.

• The tax-free savings limit has been increased to R46k.

• Sin tax on alcohol and tobacco products has been increased in line with inflation, as have fuel levies.