Be prepared to pay more for your alcohol and cigarettes
Finance Minister Tito Mboweni on Wednesday took centre stage in Parliament as he unveiled his budget speech for 2020.
Smokers and drinkers are in for a rude awakening because it was announced that there will be increases of between 4.4% and 7.5% in excise tax on alcohol and tobacco.
This means that a 340ml can of beer or cider will cost an extra 8c while a 750ml bottle of wine will cost an extra 14c.
Other increases will see a 750ml bottle of sparkling wine cost an extra 61c, while a bottle of 750ml spirits, including whisky, gin or vodka, will rise by R2.89.
A packet of 20 cigarettes will be an extra 74c, while a 25 gram of piped tobacco and a 23-gram cigar will cost an extra 40c and R6.73, respectively.
In its Budget Review report, the National Treasury said Government will introduce a new category or tariff sub-heading for heated tobacco products in the schedule of excise duties. Currently, these products are nor subject to excise duty.
The rort further stated that the government will increase most excise duties by an amount that matches expected inflation of 4.4% for 2020/21, and by 6% in the case of sparkling wine and 7.5% for pipe tobacco and cigars.
Written by: Staff Writer.