South Africans to cough up more for cigarettes, alcohol, fuel

Wednesday, February 11, 2009

Parliament - South Africans will be coughing up more this year on sin and fuel taxes - the taxes on alcohol and tobacco products have gone up as well as on fuel.

Delivering his 2009 Budget Speech in Parliament, Minister Manuel said this year's increase in the official excise duties on tobacco products was 13 percent.

"A packet of 20 cigarettes will cost 88 cents more," the minister said, adding that a bottle of wine will cost 10.5 cents more, and a can of beer 7 cents more.

Motorists will also fork out more for a tank of petrol from April this year.

Minister Manuel said as road-users South Africans had gained some advantage since mid-2008 from lower international oil prices.

"As road-users we also know that there is a substantial increase in spending on maintenance and construction under way, and we still face a heavy burden of road accidents and associated compensation claims."

He said these are costs that have to be covered, and so there will be increases in the fuel levies from 1 April this year, of 23 cents and 24 cents per litre in respect of the general petrol and diesel levies, and 17.5 cents in the road accident fund levy.

"As indicated last year, it is proposed that the general fuel levy should form part of a new municipal revenue arrangement to replace the former Regional Service Council levies," the minister said.

He affirmed that in the 2009/10 financial year, 23 percent of the general fuel levy will be earmarked for metropolitan municipalities to support expenditure on roads and transportation infrastructure.