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Higher bill for drinkers, smokers as sin taxes increase

Treasury is proposing excise duties on alcoholic beverages and tobacco products of between 6% and 10% this year.

The tax on a 340 ml can of beer will increase by about 12 cents a can. Picture: freeimages.com

CAPE TOWN – Drinkers and smokers can again prepare to dig deeper into their pockets for alcohol and cigarettes.

Treasury is proposing excise duties on alcoholic beverages and tobacco products of between 6% and 10% this year.

Tabling his budget in Parliament on Wednesday afternoon, Finance Minister Pravin Gordhan said beside increases in so-called sin taxes, there will also be an increase in the fuel levy and the Road Accident Levy.

As is the case every year, government is not sparing drinkers and smokers in its budget this year either.

Since 2002, the tax rates for alcoholic beverages have consistently increased above inflation, and this year is no different.

Excise duties on a packet of 20 cigarettes will increase to R14.30 from R13.24 – that is an increase of more than a rand.

The tax on a 340ml can of beer will increase by about 12 cents per can.

Wine will go up by 30 cents a litre, while the tax on spirits will increase by about R4.50 a bottle.

Motorists can prepare to pay 30 cents more per litre of petrol, in addition to a 9 cent increase in the Road Accident Fund.

(Edited by Masechaba Sefularo)