Government will continue consulting industry stakeholders throughout the year as it reviews the alcohol excise regime, following a decision to raise sin taxes in line with the inflation forecast.
Presenting the national Budget on Wednesday, Finance Minister Enoch Godongwana announced a 3.4% increase in specific excise duties on alcohol and tobacco products, signalling government’s intention to maintain inflation-linked adjustments while broader policy discussions continue.
Alcoholic beverages
Under the new rates, a 750ml bottle of spirits will see an excise increase of R3.20, moving from R94.46 to R97.66. This reflects R302.84 per litre of absolute alcohol.
Sparkling wine will rise by 49c per 750ml bottle, fortified wine by 26c and unfortified wine by 15c. Malt beer, ciders and alcoholic fruit beverages will all increase by 8c per 340ml can.
Tobacco products
Tobacco products will also be adjusted in line with the expected inflation rate. This includes vapes, which are classified as electronic nicotine and non-nicotine delivery systems.
“The required legislative amendments will form part of the taxation laws amendment bills this year,” said Godongwana.
Excise duty on vapes has been increased by 11c per millilitre. Cigars remain the most heavily taxed at R4.56 per 23g. A packet of 20 cigarettes will cost 77c more, while heated tobacco sticks will increase by 58c per pack of 20. An additional 87c will be added to cigarette tobacco.
National Treasury said the excise adjustments are not expected to immediately change the shelf prices of alcoholic beverages and tobacco products already in stores, as duties on those goods have already been paid.
The new rates will apply to products still being manufactured, meaning the impact on consumers is likely to become visible as new stock enters the market.
