Follow us on:

Heavy tax on 'sinners'

By Faeza
24 February 2016


Smokers and drinkers will again be heavily taxed on these (in the eyes of the government) bad habits.

The duty on a packet of 20 cigarettes for example rises by 6.7% from R12.43 to R13.24, and that on a can of beer (340ml) by 8.5% from 124c to 135c.

The price of 1 litre of wine will rise by 8% (24c), 1 litre of sparkling wine will also be 8% (78c) more expensive and spirits 8.2% (394c for a bottle of 750 ml) more expensive. The duty on ciders and alcoholic fruit beverages will rise by 8.5% (R6.21 for 1litre).

Cigar smokers will also pay 6.7% more (R4.68 for 23g) and pipe smokers 7% more (27c for 25 g).

Tax rates on alcoholic beverages have been consistently increased beyond inflation since 2002. The 2016 Budget continues this trend, with excise duty rate increases of between 6.7% and 8.5%. Mixtures of grain-fermented beverages (such as beverages made from maize) with an alcohol content ranging from 2.5% to 9% by volume are proposed as an additional excise duty category.

Fin24 has more details.