South Africans made to pay more for their sins

CAPE TOWN – Finance Minister Trevor Manuel announced increases in so-called sin taxes that will raise an additional R1,4 billion for government coffers.

The increases will see a packet of 20 cigarettes costing 64 cents more, a 340ml can of beer four cents more, a litre of wine 21 cents more, and a 750ml bottle of spirits R1,76 more. Manuel said the increases on tobacco products would raise an additional R794 million, while the increases on alcoholic beverages would raise a further R660 million.Cigarettes would go up 16,55 per cent, to R4,53 for 20; cigarette tobacco would rise 11,70 percent, to R139,04 a kilogram; cigars would increase 15,67 per cent, to R1,233,04 a kilogram; and pipe tobacco would rise 17,30 per cent, to R68,32 a kilogram.A total tax burden (excise duties and VAT) as a percentage of the weighted average retail selling price would be 43 per cent on spirits, 33 percent on clear beer, and 23 per cent on wine, phased in over three years.The tax on traditional African beer would remain unchanged at 7,82 cents a litre.Taxes on ciders and alcoholic fruit beverages would increase from 143,6 cents a litre to 153,74 cents a litre.- Nampa-SapaManuel said the increases on tobacco products would raise an additional R794 million, while the increases on alcoholic beverages would raise a further R660 million. Cigarettes would go up 16,55 per cent, to R4,53 for 20; cigarette tobacco would rise 11,70 percent, to R139,04 a kilogram; cigars would increase 15,67 per cent, to R1,233,04 a kilogram; and pipe tobacco would rise 17,30 per cent, to R68,32 a kilogram. A total tax burden (excise duties and VAT) as a percentage of the weighted average retail selling price would be 43 per cent on spirits, 33 percent on clear beer, and 23 per cent on wine, phased in over three years. The tax on traditional African beer would remain unchanged at 7,82 cents a litre. Taxes on ciders and alcoholic fruit beverages would increase from 143,6 cents a litre to 153,74 cents a litre. – Nampa-Sapa