Drinkers and smokers to cough up more in sin taxes
The cost of drinking and smoking is going up again with excise duties - or so-called "sin taxes" - rising by between 2.5% and 12% on tobacco products and alcoholic beverages.
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In his 2014/15 Budget‚ Finance Minister Pravin Gordhan has hit spirit drinkers the hardest and been kindest to pipe smokers.
Excise duties on tobacco products are determined in accordance with a targeted total tax burden (excise duties plus VAT) of 52% of the retail price. For wine‚ clear beer and spirits‚ the targeted tax burdens (excise duty plus VAT) are 25%‚ 35% and 48% respectively.
This year sees excise duties on sparkling wine rise by 10% to R9.11/litre‚ unfortified wine by 6.2% to R2.87/litre and fortified wine by 7.5% to R5.21/litre.
For malt beer‚ excise is up 8% to R68.92 rand per litre of absolute alcohol (or 117c per 340 ml can)‚ alcoholic fruit beverages‚ up by 8.1 to R3.45/litre (117c/ 30ml can). Excise on spirits has been raised by 12% to R137.54 per litre of absolute alcohol - or R44.36 for a 750ml bottle.
Excise on cigarettes rises 6.2% to R11.60 per packet of 20‚ cigarette tobacco by 7.2% to R13.03/50 grams‚ pipe tobacco by 2.5% to R3.63/25 grams‚ and cigars by 9% to R61.87/23 grams.
As has traditionally been the case‚ traditional African beer managed to again escape the excise tax net‚ maybe a good enough reason to try it out if you haven't already.
Source: I-Net Bridge
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