Tax Increase: South Africans may no longer afford to smoke and drink

South Africa's finance Minister, Parvin Gordhan has revealed in a new proposal that alcohol and tobacco excise duty rates will get an increase this year.

While presenting the proposal at the National Assembly Wednesday, February 22, 2017, he said: The National Treasury proposes increases in the excise duties for alcohol and tobacco of between 6 and 10 percent.'

If the new proposal is finally approved, an excise duty of 149.6 cents will be charged on every 340ml can of malt beer.

Likewise, an excise duty of R3.61 per litre will be charged on unfortified wines. That represents an increase of 8.8 percent on the current charge of R3.31 per litre. 

Similarly, a new rate of R6.17 per litre for fortified wines was proposed. The rate has a 6.1 percent increase as the current charge is R5.82 per litre.

The excise duty for sparkling wine will go up by 8.8 percent from R10.53 to R11.46 per litre, while spirit products will also get an increase of 8.5 percent. It would raise the excise duty to R175.19 per litre of absolute alcohol, or R56.50 per 750ml bottle. 

For cigarettes, a charge of R14.30 will be imposed on a box of 20. That means an increase of 8 percent from the current R13.24 per 20 cigarettes. Moreso, cigarette tobacco products will experience similar increase, from R14.88 per 50g to R16.07 per 50g. 

Same goes for pipe tobacco and cigar products which will also bagged a 9.5 percent excise duty.