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#BudgetSpeech2022: Excise duties hiked, new vape tax proposed

Excise duties on alcohol and tobacco will increase by between 4.5% and 6.5%, Finance Minister Enoch Godongwana announced during his Budget Speech on Wednesday, 23 February.
#BudgetSpeech2022: Excise duties hiked, new vape tax proposed
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The increases mean that as from today:

• a 340ml can of beer or cider will cost 11c more;

• a 750ml bottle of wine will be 17c more expensive;

• a bottle of sparkling wine will cost an additional 76c;

• a bottle of spirits will be R4.83 more expensive;

• a packet of cigarettes will cost an additional R1.03;

• 25 grams of piped tobacco will cost an extra 37c; and

• a 23 gram cigar will be R6.77 more expensive.

New vape tax from January 2023

Government also proposes to introduce a new tax on vaping products of at least R2.90 per millilitre from 1 January 2023. A new tax will also be introduced on beer powders,” Godongwana announced.

In its Budget Review document, National Treasury said following public consultations, government proposes to apply a flat excise duty rate of at least R2.90 per millilitre to both nicotine and non‐nicotine solutions.

“The proposal will be included in the 2022 Taxation Laws Amendment Bill for further consultation before being introduced from 1 January 2023.”

Treasury said the current excise duty regime applies a flat excise rate for traditional African beer powder of 34.7c/kg.

“There are similar products in the market. In the interest of equity, these products will be included in the tax net with an excise equivalent to the powder rate from 1 October 2022.”



SOURCE

SAnews.gov.za is a South African government news service, published by the Government Communication and Information System (GCIS). SAnews.gov.za (formerly BuaNews) was established to provide quick and easy access to articles and feature stories aimed at keeping the public informed about the implementation of government mandates.

Go to: http://www.sanews.gov.za

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