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Drinkers and smokers will cough up more to support their habits.
Bad news for drinkers, especially beer and spirit lovers! So-called “sin taxes” on alcohol are going up by between 6% and 20%, almost enough to drive one to teetotalism.
But this should not really come as a shock to tipplers as Finance Minister Pravin Gordhan has previously warned that tax formulas were under review to bring South Africa more into line with other countries and to assist in the fight against alcohol abuse.
However, Gordhan may have also be taking the advice of Dhiveshan Naicker who offered him the following tip: “Raise the tax on alcohol and cigarettes so that people will stop drinking and smoking too much.” Gordhan said this was good advice.
The current targeted total tax burdens (excise duties plus VAT) on alcoholic beverages are 23%, 33% and 43% of the weighted selling price of wine, beer, and spirits respectively. These benchmarks have now been reviewed.
“It is now proposed to retain the current benchmark for wine, but to increase the targeted benchmark tax burdens for beer and spirits to 35% and 48% respectively,” the Budget Review document said.
“These increases will be phased in over two years.”
This year sees excise duties on sparkling wine rise by 8% to 7.53 rand/litre, unfortified wine by 7.7% to 2.50 rand/litre and fortified wine by 6% to 4.59 rand/litre.
The big rises are malt beer, up by 10% to 59.4 rand per litre of absolute alcohol (not per litre of beer), alcoholic fruit beverages, up by 9.6% to 2.97 rand/litre and spirits, up by a whopping 20% to 111.64 rand per litre of absolute alcohol.
Excise on cigarettes rises 6% to 10.32 rand per packet of 20, cigarette tobacco by 4.9% to 11.05 rand/50grams, pipe tobacco by 8.1% to 3.22 rand/25 grams, and cigars by 5% to 53.05 rand/23 grams.
As was the case last year - and in previous years - traditional beer managed to again escape the excise tax net, maybe a good enough reason to try it out.
The bottom line for drinkers and smokers is this: a packet of 20 cigarettes will cost 58 cents more; a litre of wine will cost 18 cents more; a 340ml can of beer will cost nine cents more; and a 750ml bottle of spirits will cost six rand more. - I-Net Bridge
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Mimosa, wrote
"Raise the tax on alcohol and cigarettes so that people will stop drinking and smoking too much" This is a very good advise from Dhiveshan Naiker. Cogratulation Mr.Gordhan for followng his advise. You just made all the drug pushers very happy, you now made alcohol and cigarettes more expensive than the illegal drugs. This is just what the country needs. We need more people like you to run this country.
Sandile, wrote
Im very delighted that once again the minister was harsh on smokers and drinkers. But I would nevertheless recomend that the increase in tax in these luxuries must subsidise things like maize meal, paraffin, etc basically things that are most used by the poor thank you
sardonicus, wrote
King Korn, Notombo Mmela! The beer for South Africa! call for the King! Blue train anyone? Joburg Beer is suddenly smelling lekker ne? MMMMampoooeerr! If you can't afford cigarettes, dagga is cheaper friends. Now you can smoke something and actually get a kick!
scronald, wrote
JohnO, wrote
Big deal, the price on a bottle of Jamesons can vary by R30 from store to store in JHB!!!
Siya mkhizi, wrote
anyway we wont stop because dis Gordhan budget...dis guy is islamic dats why ene bif notywala
lalas, wrote
Guess Who, wrote
Non-smokers and non alcohol drinkers give usa breaks we smoke cause we can so dont bother it is your choice.I think next time we should appoint an alcoholic or former alcoholic maybe the situation will change the will find another way to generate revenue..
Anonymous, wrote
Cheers to you Pravin!!!! Get your tax money somewhere else - why do people that enjoy a drink responsibly also have to suffer ???Better bulk up berfore the prices go up....
Asanda me, wrote
damn b*stards, now im gonna smoke and drink harder than ever until the prices are effective
Thirsty..., wrote
Anonymous, wrote
Have any of these clowns ever stopped to wonder what will happen to the economy of this country if all the drinkers and smokers had to quit the habit ???? It is the same every year, have they never found another way of generating revenue.
skabandowski, wrote
we wont quit beer....that would be a mistake i have ever done....money always comes and go
Khalsa Singh, wrote
Drinking a cold beer on a hot day or a fine red wine on cold evening isnt a sin.....the ministerial handbook would be the sin.
sipho syphfliss, wrote
Anonymous, wrote
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