Budget 2017
Bitter pill for smokers and drinkers
Minister gets hard on vices in an effort to promote good health ... and raise funds for the fiscus
All things sweet and sinful will come at a higher price in 2017. Finance minister Pravin Gordhan said during a media briefing that government had not forgotten about those who drink and smoke tobacco when deciding what to tax. "We want to look after your hearts and lungs as well, so the appropriate [tax] increase [has been made]," said Gordhan. Treasury continued its above-inflation adjustments — which it started in 2002 — to the excise duties on alcohol and tobacco. The tax on traditional tobacco products such as cigars, cigarettes and pipe tobacco will be raised by between 8% and 9.5%. This will raise an additional R656m. Treasury has not proposed any excise duties on e-cigarettes, which entered the SA market a couple of years ago. Excise duty increases on alcohol of between 6.1% and 9% are proposed for the 2017 budget. This will raise R1.2bn. This will result in a bottle of unfortified wine costing 30c more per litre and a bottle of whisky R4.43 more, while beer will increase by ...
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