Sin taxes to bring in more than R3bn — including new sugar tax
Beer drinkers will be hardest hit — but drinkers of traditional African beer are given a reprieve
Treasury expects to bring in more than R3bn extra from increases in so-called sin taxes in the 2018-19 fiscal year — if the new “sugar tax” is included under that umbrella.
Revenue from excise duties on tobacco products will rise by R420m, revenue from excise duties on alcoholic beverages will increase by R910m, and the new “health promotion levy” — the sugar tax, which comes into effect on April 1 — is expected to bring in R1.93bn, amounting to R3.26bn in total.
Hardest hit will beer drinkers, whose tipple will cost them 10% more in nominal terms, and 4.5% more in real terms.
Drinkers of traditional African beer, on the other hand, will enjoy a real decrease of 5.5% as those duties will remain unchanged.
Here is Treasury’s breakdown of how much more your vices will cost you: