Here is how much Godongwana has raised tax on alcohol and cigarettes

Minister of Finance Enoch Godongwana has said that raising certain taxes is “unavoidable”. One of those inevitable taxes is excise duties on alcohol and smoking products, although the increase is lower than some of the more alarmist predictions. Godongwana delivered his budget speech in Cape Town on Wednesday afternoon, basing his determinations on the belief the economy would grow 1.6% in the coming financial year.

As of 1 April, all forms of liquor will receive a 3.39% increase in excise duty, well short of the possible6% some had feared. This will result in a 340ml can of beer or cider costing at least 8c more, while the tax on a bottle of wine will increase by 15c. For lovers of whisky, rum, vodka and similar spirits, a 750ml bottle will be taxed an extra R3.20.

An earlier report by the National Treasury showed South Africans consumed roughly 200 million bottles of spirits in 2022. Based on Godongwana’s increase, theNational Treasurycould rake in an extra R640 million in tax on spirits. Cigarette and other smoking products will also increase in line with inflation.

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“This includes excise duty on electronic nicotine and non-nicotine delivery systems,” said Godongwana. The tax on a box of 20 cigarettes will increase from R22.81 to R23.58, while cigarette tobacco tax increases by 87 cents per 50 grams. Tax on cigars will increase by R4.56 per 23 grams, as will pipe tobacco by 28 cents per 25 grams.

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