Sin taxes to rise by between 6 and 10%
SOUTH Africans who indulge in alcohol and cigarettes are expected to cough up more for their vices as Finance Minister Pravin Gordhan proposed the customary increases in sin taxes in this year’s Budget yesterday.
The Treasury has continued its trend of increasing tax rates on most alcoholic beverages above inflation.
While the excise duty rate on traditional African beer remains unchanged at R7.82, the price of malt beer would be increased as excise duties move up from 135 cents to 146.9 cents per 340ml can. The taxes on fortified wine goes up from R5.82 to R6.17 per litre, unfortified wine from R3.31 to R3.61 per litre, while sparkling wine drinkers will pay an additional 97 cents in taxes per litre.
Those indulging in hard tack like whisky and brandy would also be digger deeper into their pockets.
Excise duties on spirits will increase from R161.47 per litre of absolute alcohol to R175.19.
Smokers will pay at least a rand more for a pack of 20 cigarettes. Cigar smokers are also not spared, with taxes on a 23g cigar increasing from R69.28 to a whopping R75.86.
Speaking in a media briefing ahead of his Budget speech, Gordhan said:
“We haven’t forgotten about the drinkers and tobacco consumers, who are very close to our hearts”.
He suggested that taking care of their hearts and livers was the reason for the increase in excise duties on alcohol and tobacco, the so-called “sin taxes”, of between 6 percent and 10 percent. – ANA