ALCOHOL AND TOBACC
Wine makers warn on rise in sin tax
With a widening debt gap, lacklustre economic growth projections and ailing state entities, the government is under pressure and will have to rely on tax to maintain the national budget. Finance Minister Malusi Gigaba duly announced a hike in sin taxes in his first budget speech on Wednesday, which producers of "luxury goods" in the tobacco and alcohol sectors had been expecting. There will be a 6% increase to the excise duty on alcohol and a 10% increase on the excise duty on tobacco. The government is also expecting to draw R1.9bn in revenue from a sugar tax, which is coming into effect on April 1. "In developing these tax proposals, government reviewed the potential contributions from the three major tax instruments, which raise over 80% of our revenue: personal and corporate income tax, as well as VAT," Gigaba said. Cigars 4 Africa co-founder Marcus Tomlinson said the sin tax had arguably had the largest effect on the handmade, premium cigar trade. "Someone who is willing to pay...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.