Budget 2018 is an austerity budget. In a nutshell, the country has been spending more than it earns so we have to tighten our belt, and pay a bit more in tax. So it's not surprising that the so-called sin taxes kicked in, and you'll pay more again this year for beer, ciggies and that latest iPhone.
Five things that will cost more:
- Alcohol and tobaccoExcise duties on the not so healthy items in our baskets increase from 1 March 2018. A pack of 20 cigarettes will cost R1.22 more and 25g of pipe tobacco will cost 38 cents more. Wine lovers will pay 30 cents more for a one-litre bottle, and when you’re celebrating with a bottle of sparkling wine you’ll need an extra 97 cents. Spirit drinkers will pay R4.80 more for a 750ml bottle of their favourite tipple. Beer and cider drinkers need deeper pockets too. 340ml cans of malt beer and cider increase by 14 cents.
- Sugary beveragesSugary drinks will be taxed if they contain more than 4g of sugar per 100ml. You can find the sugar content on the drink’s nutrition label. A 340ml can of a well-known soda contains 10g of sugar per 100ml. For every gram over the 4g limit, an extra 2.1c is levied. Your can that cost R10 will cost R10.12 from 1 April 2018.
- Petrol and dieselOn 4 April, the price of petrol will increase by 52 cents a litre, 30 cents of this is for the road accident fund levy and 22 cents for the general fuel levy.
- Plastic bags and incandescent light bulbsThe plastic bag levy increases to 12 cents a bag on 1 April, and there’s an increase from R6 to R8 on incandescent light bulbs. Switching to energy efficient light bulbs will save you some money.
- Luxury goodsElectronics, cosmetics, smartphones and golf balls, among others, incur tax of between 5 and 7%, this will increase to 7 – 9%.