Smokers, drinkers pay to indulge

A Jameson stand during the FNB Whisky Festival in Sandton. Levies on spirits are going up by 20 percent, and that on beer and wine by 10 percent and 8 percent respectively. SMOKERS and drinkers will pay more to satisfy their cravings after Pravin Gordhan announced an increase in tobacco and alcohol duties yesterday.

“The increases in duties on tobacco products will be between 5 and 8 percent this year,” he told Parliament.

The finance minister has proposed an increased tax burden for beer and spirits which will be phased in over two years.

“The excise on spirits will increase by 20 percent to R36 for a 750ml bottle this year, the tax on beer goes up by 10 percent to R1.01 for a 340ml can, and wine will contribute 8 percent more to the fiscus,” Gordhan said.

Average duty rates for malt beer of 91.75c for a 340ml can of beer will be increased to R1.0098 for the same amount.

There is no change in the duties for traditional African beer of 7.82c a litre.

Taxes on unfortified wine will increase from R2.32 a litre to R2.50 a litre, a nominal increase of 7.76 percent. Fortified wine duties will increase from R4.33 a litre to R4.59 a litre, a nominal rise of 6 percent.

Sparkling wine will now have a duty of R7.53 a litre, up by about 8 percent, while duties on ciders and alcoholic fruit drinks will increase by nearly 10 percent.

Smokers can expect to pay 5.95 percent more (excluding inflationary increases), with a packet of 20 going up by 58c.

Tobacco, pipe tobacco and cigar duties will rise between 5 percent and 8 percent.