The budget is bad news for drinkers and smokers
Fuel levies are set to rise — on top of carbon tax — and those with a sweet tooth will not be smiling
The Treasury plans to raise an extra R1bn from increases in “sin taxes” on alcohol and tobacco products. Smokers and drinkers will pay more for their habits, with the increase in excise duties on tobacco products expected to yield R400m more and the increase in duty on alcoholic beverages an extra R600m. The increases are above inflation at 7.4% (2.2% in real terms). Sparkling wine, pipe tobacco and cigars rise 3.8% each in real terms or 9% in nominal terms. The Treasury has also proposed zero-rating additional items in terms of VAT — white bread flour, cake flour and sanitary pads — from April 1 this year.
This will help mitigate the one percentage point rise in VAT in April 2018. The zero rating of these additional items will cost the fiscus R1.1bn. In terms of the tax proposals, excise duty on a can of beer goes up 12c to R1.74, while the excise duty on a 750ml bottle of wine will rise 22c to R3.15. Duty on a 750ml bottle of sparkling wine goes up 84c to R10.16 and on a b...
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.