There’s been a largely muted, but in some cases maybe even a slightly impressed, response by opposition parties to Finance Minister Enoch Godongwana’s budget speech.
The Minister resisted any urges he may’ve had to raise personal and income taxes.
But if you’re an alcohol drinker, you will have to dig a little deeper into your pockets for your favourite tipple.
Godongwana announced an increase of between 6.7% and 7.2 % in excise duties – or so-called Sin Taxes.
The Minister delivered his budget speech in the Cape Town City Hall, on Wednesday.
These proposals will come into effect in April.
- A can of beer increases by 14 cents;
- A can of a cider and alcoholic fruit beverage goes up by 14 cents;
- A bottle of wine will cost an extra 28 cents;
- A bottle of fortified wine will cost an extra 47 cents;
- A bottle of sparkling wine will cost an extra 89 cents; and
- A bottle of spirits, including whisky, gin or vodka, increases by R5.53
Godongwana adds that smokers will also have to pay more.
They also propose to increase tobacco excise duties by 4.7 per cent for cigarettes and cigarette tobacco, and by 8.2 per cent for pipe tobacco and cigars. This translates to:
- A R9.51 cents increase for cigars;
- A 97 cents increase to a pack of cigarettes; and
- An extra 57 cents for a pipe of tobacco.
There’s good news for the recipients of social grants.
The old age and disability grant has seen a greater increase than the foster care and child support grants.
- An increase of R100 to the old age, war veterans, disability and care dependency grants. This amount will be divided into R90 effective from April 2024, and R10 effective October 2024;
- A R50 increase to the foster care grant; and
- A R20 increase to the child support grant.
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