South Africans to pay more for tobacco, alcohol
Sin taxes increases price of items in SA
Following yet another increase on sin taxes announced by finance minister Tito Mboweni on today, South Africans are set to pay even more for tobacco and alcohol‚ according to Sowetan Live online portal.
However, sorghum beer and probably others in that category will not be affected by the new increases in excise duty or sin tax.
According to the report, the increase on sin tax sees excise duty on a can of beer rise from 12c to R1‚74‚ while a 750ml bottle of wine will have an excise duty of R3‚15‚ which is 22c more. The duty on a 750ml bottle of sparkling wine goes up by 84c to R10‚16‚ while the duty on a bottle of whiskey increases by R4‚54 to R65‚84.
The minister also announced that cigarettes fuel levies for petrol diesel will increase in percentages.
The Treasury's 2019 Budget Review document reveals that government proposes to increase excise duties on tobacco products by between 7.4% and 9%.
The minister also noted that “Cigarette makers appear to have absorbed most of the increases last year rather than increasing prices. As a result‚ the excise burden for cigarettes is likely to remain slightly above the target level.”
Henceforth, social grants recipients will have increments on the grants that provide relief to millions of poor households, the minister said. In addition to that, old age‚ disability‚ war veterans and care dependency grants will increase by R80, foster care grant will go up by R40 to R1‚000, and child support grant will increase by R10 to R420 in April and to R430 in October.