BOOZERS and smokers will have to dig deep into their pockets after Finance Minister Enoch Godongwana's budget speech on Wednesday, 21 February.
Godongwana increased the sin tax by up to 7% when he presented the 2024/2025 budget speech in Parliament in Cape Town.
He said for alcohol products excise duties, above-inflation increases of between 6,7 and 7,2% for 2024/25 are proposed.
This means a can of beer, cider and alcoholic fruit beverage goes up by 14 cents, a bottle of wine will cost an extra 28 cents, while a bottle of fortified wine will cost an extra 47 cents.
He said a bottle of sparkling wine will cost an extra 89 cents and bottle of spirits, including whisky, gin or vodka, increases by R5,53.
“We also propose to increase tobacco excise duties by 4,7% for cigarettes and cigarette tobacco, and by 8,2% for pipe tobacco and cigars. This translates to a R9,51 cents increase for cigars, 97 cents increase to a pack of cigarettes and an extra 57 cents for a pipe of tobacco,” he said.
Godongwana said after receiving suggestions from the public, they decided to table an increase of the excise duty on electronic nicotine and non-nicotine delivery systems, known as vapes, to R3,04 per millilitre.
On the good side of things, the minister announced that the permanent social grants have also been increased.
He said to keep pace with inflation, the old age, war veterans, disability and care dependency grants will be increased by R100.
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He said this will be divided into R90 effective from April, and R10 effective October.
“A R50 increase to the foster care grant, and A R20 increase to the child support grant. We are sensitive to the increase in the cost of living for the nearly 19 million South Africans who rely on these grants to make ends meet,” he said.
He said that work is currently underway to improve the Covid-19 Social Relief of Distress Grant by April 2024.
The minister said the national Treasury will work with the Department of Social Development in ensuring that improvements in this grant are captured in the final regulations.
“We've also made provision for key initiatives aimed at job creation. R61,4 billion is allocated for employment programmes over the medium term. R7,4 billion has been identified for the Presidential Employment Initiative,” he said.
