Bad news for smokers, drinkers as sin taxes increase

CAPE TOWN - Finance Minister Tito Mboweni said sin taxes are increasing between 7,4 percent and 9 percent.

He made the announcement during his budget speech on Wednesday.

Beer drinkers can expect to pay 12 cents more for a can of beer.

Excise duties on alcoholic beverages are determined based on a percentage of the weighted average of their retail price.

1. The excise duty on a can of beer goes up by 12 cents to R1.74

2. A 750ml bottle of wine will have an excise duty of R3.15, which is 22 cents more

3. The duty on a 750ml bottle of sparkling wine goes up by 84 cents to R10.16

4. The duty on a bottle of whiskey will go up by R4.54 to R65.84

5. A pack of 20 cigarettes goes up by R1.14 cents to R16.66

6. The excise duty on a typical cigar will go up by about 64 cents to R7.80

7. There will be no change to the excise duty on sorghum beer

Mboweni said cigarette makers appear to have absorbed most of the increases last year rather than increasing prices.

As a result, the excise burden for cigarettes is likely to remain slightly above the target level.

Source
eNCA

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