How much you'll pay for alcohol after sin tax increase
South Africans will have to dig deeper into their pockets for alcohol and cigarettes...
Consumers will be paying more for their favourite alcoholic and tobacco products as the government increases excise duties above the expected inflation rate.
The hikes, announced by Finance Minister Enoch Godongwana in the 2025 Budget, are aimed at raising revenue and discouraging consumption.
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The details of the new alcohol excise taxation framework will only be finalised after the approval of the 2025 Budget.
Godongwana said in Budget Speech in Parliamnt on Wednesday afternoon that alcohol taxes will rise by 6.75%, while the price of tobacco products—including cigarettes, cigarette tobacco, and vaping products—will increase by 4.75%.
Pipe tobacco and cigars will see a higher increase of 6.75%.
"The guideline excise tax burden as a percentage of the retail selling price of the most popular brand within each tobacco product category is currently 40%," according to the Budget Review.
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The Treasury says future adjustments will take effect from the 1st of April each year.
Here's how much you'll pay for alcohol and tobacco products after the sin tax increase:
Meanwhile, consultations are planned for later this year on a new alcohol tax structure.
This could mean that wine and beer may be taxed differently in the future.
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