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Budget 2019 might be the reason why we should draw up new budget plans

SANDTON – With the SIN and fuel tax increase, we have asked the community of Sandton whether they are coping with these budget changes.


Finance minister Tito Mboweni delivered his 2019 budget speech on 20 February, and as expected, we might have to alter our budgets or completely draw up new ones to accommodate the new price increases.

Sin tax has increased – a can of beer goes up by 12 cents to R1.74, a 750ml bottle of wine will have an excise duty of R3.15, which is 22 cents more. The duty on a 750ml bottle of sparkling wine goes up by 84 cents to R10.16. The duty on a bottle of whiskey will go up by R4.54 to R65.84. A pack of 20 cigarettes goes up by R1.14 cents to R16.66. The excise duty on a typical cigar will go up by about 64 cents to R7.80 and there will be no change to the excise duty on sorghum beer, however, fuel levies will increase by 29 cents per litre for petrol and 30 cents per litre for diesel.

Errol Mayor, spokesperson and legal specialist at Standard Bank financial consultancy said the increase in sin and fuel tax affected consumers negatively since they wouldn’t have disposable money but it could be workable. “It is a question about priorities when it comes to budgeting for financial planning purposes. From this perspective, costs incurred before alcohol and tobacco is a priority,” he said.

“Lead a healthier life, you may even save on medical costs in the long term. Healthier lifestyle leads to better quality of life.”

Mayor also gave advice on the importance of budgeting. “Unless you have an unlimited trust fund, it is the first step in financial planning. “If you cannot budget, you failed the most important test of financial literacy and financial planning,” he concluded.

Meanwhile, Sandton Chronicle asked residents how the tax change affected their budgets.

Jane Samuels said she neither drinks nor smokes but the fuel tax increase has forced her to draw up a new budget for the month, “I can’t keep up with the way the fuel price fluctuates, I never know how much money to budget on it,” she said.

Jabulane Hlongwane said he didn’t know what to do because it was not easy to give up smoking, “I have tried quitting smoking before so maybe now it’s time to just quit, otherwise my wallet will suffer,” he said.

Jaco De Bryn said this was a tough time for him because he drives daily to work and smokes, “At least only one of them should’ve increased, not both. I now feel twice the heat but have no choice but to adjust my existing budget,” he said.

Nicole and Sydney Oliver said their weekends would never be the same, “We usually host [parties] at our house so, with beer increasing, we might have to stop completely,” said Nicole.

“And I’m sure our friends will complain about coming here every weekend, with the fuel increase,” Sydney added.

Also check out:

https://www.citizen.co.za/sandton-chronicle/219967/infographics-summary-national-budget-speech-2019/

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