Cape Town – Smokers can expect to pay 60 cents more for a packet of cigarettes, while consumers will pay R1.08 more for a can of beer.
Finance Minister Pravin Gordhan, in the Budget Speech today, announced increases of 5.7 percent and 10 percent to the so-called ‘sin taxes’ in respect of alcohol and tobacco products, which are determined in accordance with a targeted total tax burden of 52% of the retail price.
Ciders and alcoholic fruit beverages increase by 7.5 cents to R1.08 per 340ml can.
The current targeted tax burden (excise duties plus vat) expressed as a percentage of the weighted average retail selling price for wine, beer and spirits are 23, 35 and 48 percent respectively.
Unfortified wine will increase by 15 cents per 750ml bottle, with spirits going up by R3.60 per 750ml bottle. – SAnews.gov.za