Bad news for smokers and drinkers
In his 2013/14 Budget‚ Finance Minister Pravin Gordhan has raised excise duties on alcoholic beverages and tobacco products by up to 10%.
Excise duties on tobacco products are determined in accordance with a targeted total tax burden (excise duties plus VAT) of 52% of the retail price. For wine‚ clear beer and spirits‚ the targeted tax burdens (excise duty plus VAT) are 25%‚ 35% and 48% respectively.
This year sees excise duties on sparkling wine rise by 10% to R8.28/litre‚ unfortified wine by 8.0% to R2.70/litre and fortified wine by 5.7% to R4.85/litre.
For malt beer‚ excise is up 7.5% to R63.81 a litre of absolute alcohol (or 7 cents per 340 ml can)‚ alcoholic fruit beverages‚ up by 7.4% to R3.19/litre. Excise on spirits has been raised by 10% to R3,60 per 750ml bottle.
Excise on cigarettes rises 5.8% to R10.92 per packet of 20‚ cigarette tobacco by 10% to R12.16/50grams‚ pipe tobacco by 9.9% to R3.54/25 grams‚ and cigars by 7% to R56.76/23 grams.
As was the case last year - and in previous years - traditional beer managed to again escape the excise tax net‚ maybe a good enough reason to try it out as an alternative tipple.