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Beer drinkers will be paying 14 cents more per can of beer, Minister of Finance, Enoch Godongwana announced at the 2024 National Budget Speech.
He also said that a can of a cider and alcoholic fruit beverage will also go up by 14 cents. Meanwhile, a bottle of wine will cost an extra 28 cents.
A bottle of fortified wine, on the other hand, will cost 47 cents extra.
A bottle of sparkling wine will cost an extra 89 cents and a bottle of spirits, including whisky, gin or vodka, increases by a whopping R5.53.
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Minister Godongwana said that the National Treasury was also proposing to increase excise duties by 4.7% for cigarettes and cigarette tobacco, and by 8.2% for pipe tobacco and cigars.
What this means is that smokers will now pay 97 cents more for a pack of cigarettes and 57 cents more for a pipe of tobacco.
Cigar lovers will pay around R9.51 extra for a cigar.
Godongwana said that as a parent, he also saw the need to increase tax on vapes to discourage the use of them by younger people.
“National treasury is tabling an increase of the excise duty on electronic nicotine delivery systems, known as vapes, to R3.04 per millilitre,” he said.
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Last year, government proposed an increase in the excise duties on alcohol and tobacco of 4.9%.
It increased a can of beer by 10 cents and a bottle of wine will cost 18 cents. Meanwhile, a bottle of spirits was raised R3.90 while a small cigar cost R5.47 more. A pack of cigarettes was put up by 98 cents last year.
Sin tax is generally the low hanging fruit for government when it comes to tax increases. It is because they are seen as harmful to the general health of society, and revenue collectors can justify their substantial increases as a means to deter their usage.
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