Carbon tax increased from R236 to R308 per tonne of carbon dioxide equivalent from 1 January 2026.
The carbon fuel levy will increase to 19c/l for petrol and 23c/l for diesel from 1 April 2026, as required under the Carbon Tax Act (2019). The carbon tax cost recover quantum for the liquid fuels sector will be increased from 0.99c/l too 1.29c/l from 1 January 2026 to align with the increases of the headline carbon tax rate.
Disclaimer: The information contained in this article is a summary of current legislation and budget proposals proposed by the Minister of Finance on the 25th February 2026. We suggest that you do not act solely on material contained in the booklet as the nature of the information contained herein is general and may in certain circumstances be subject to misinterpretation. In addition, the budget proposals may not include all legislative adjustments which could be made in the near future. Consequently we recommend that our advice be sought when encountering these potentially problematic areas. While every care has been taken in the compilation of the booklet, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions.