Alcohol drinkers and smokers will have to dig deep into their pockets as finance minister Enoch Godongwana increased excise duties in his first budget speech.
On Wednesday, Godongwana said the government planned to increase excise duties on alcohol and tobacco by between 4.5 and 6.5 percent for 2022 and 23 starting today. This is lower than last year's 8 percent increase.
"The targeted excise burden for wine a 750 bottle of wine will be 17c more expensive, a 340 can of beer or cider be 11c more, a bottle of sparkling wine will cost an additional 76c, a bottle of spirits will be R4.83c more expensive," Godongwana said.
Cigarette prices will increase by R1.03, 25 grams of piped tobacco will cost an extra 37c, and a 23-gram cigar will be R6.77 more expensive.
Godongwana said the current excise duty regime applies a flat rate for traditional African beer powder of 34.7c per kg. There are similar products in the market. "In the interest of equity, these products will be included in the tax net with an excise equivalent to the powder rate from 1 October 2022," he said.
The government also proposes to introduce a new tax vaping product of at least R2.90 per milliliter from January 1, 2023.
The sugar tax was also increased. Godongwana said beverages with more than 4g of sugar content per 100 ml will rise by 2.21c per gram to 2.31c per gram from April 1, 2021.
Last week, the South African alcohol industry called on Godongwana to put forth measures to improve conditions in the sector during his 2022 Budget speech.