Tax Planning
Tariff Shifts in South Africa: Environmental Levies & Fuel Duties Under the 2026 Budget
South Africa’s 2026 budget introduced new tariffs, environmental levies, and fuel duties—here’s how importers, consumers, and businesses are impacted.
By NomadicTax Research Team • 5-8 min read • August 15, 2026
## Key Policy Changes
South Africa’s **Tariff Amendments 2026** include several shifts announced in the **2026 Budget** and implemented via notices from SARS. Key changes include:
* **Environmental levy on CO₂ equivalent emissions**: Increased from **R236 per tonne to R308 per tonne** under Part 3F of Schedule 1. ([sars.gov.za](https://www.sars.gov.za/legal-counsel/secondary-legislation/tariff-amendments/tariff-amendments-2026/?utm_source=openai))
* **General fuel levy and carbon fuel levy increases**: Petrol levy up by **9 cents per litre** (from 401c to 410c), diesel up **8 cents per litre**. Carbon fuel levy—petrol rates increase from 14c to 19c; diesel from 17c to 23c. ([sars.gov.za](https://www.sars.gov.za/legal-counsel/secondary-legislation/tariff-amendments/tariff-amendments-2026/?utm_source=openai))
* **Tariff Rate Quota adjustments** under agreements like **SADC-EU EPA** and **SACUM-UK EPA** to align trade duties with new bilateral and regional trade frameworks. ([sars.gov.za](https://www.sars.gov.za/legal-counsel/secondary-legislation/tariff-amendments/tariff-amendments-2026/?utm_source=openai))
## Who Is Affected Most
These changes will have ripple effects across sectors and demographics:
* **Importers** dealing in goods subject to EPA quotas will face revised duties and quota-limits—possible cost increases.
* **Transport, manufacturing, agriculture** sectors using fossil fuels will feel the impact of higher fuel and carbon levies. These costs may pass through to consumers.
* **Consumers** facing higher prices—fuel cost increases may translate into more expensive transport and goods.
## What Businesses Should Do Now
- **Review supply chains and pricing strategies** to factor in increased environmental levies and fuel costs.
- For energy-intensive industries, consider fuel alternatives or compliance strategies (e.g. fuel efficiency, renewables) where possible.
- Ensure understanding of import quotas under the EPAs; assess if duties have risen or quota allowances shifted.
## Examples of Practical Impact
**Example 1:** A logistics company transporting goods across borders will manage higher fuel costs. Even a 9-cent per litre increase could meaningfully raise expenditure. It should renegotiate contracts or recalculate pricing to account for higher operational costs.
**Example 2:** An importer of industrial machinery from EU under the SADC-EU EPA might now have a smaller duty-free quota. They may pay duty beyond certain units, or face higher duties under the revised Schedule. That could affect invoice pricing and profit margins.
## Fit With Broader Trends and Implications
These levy and tariff changes reflect global pressure on governments to price carbon emissions, discourage fossil fuel use, and align trade with sustainability goals. For foreign businesses or digital nomads importing goods, buying automotive fuel, or renting vehicles, these costs matter significantly.
It’s likely we’ll see more enforcement and stricter customs valuation and classification rules as revenue authorities aim to curb evasion and align with environmental policies.
## Conclusion
If you conduct business in South Africa—or are importing goods, using fuel intensively, or consuming heavily—this period of change demands revisiting cost structures. For those setting up supply chains or pricing plans, factoring in environmental levies and duty revisions is essential for maintaining margins and compliance.