By: Natasha Archary
Finance Minister Enoch Godongwana broke bad news to smokers in his 2023 Budget Speech by hiking up the Sin Tax and stretching pockets even further.
Godongwana said the excise duties on both alcohol and tobacco will increase by a steep 4.9% from 01 April.
The Minister delivered the National Budget Speech from Cape Town City Hall on Wednesday, 22 February.
This will mean that smokers, who are the hardest hit, will now pay 98c more for a pack of 20 cigarettes.
While beer drinkers will need to find 10c more for a 340ml can of their favourite brew.
Every year, Sin Taxes are hiked in line with the expected inflation rate, and there’s generally an increase of between 4.5% and 6.5% on alcohol and tobacco products.
South Africans will now pay:
- 10c more for a 340ml can of beer
- 18c more for a bottle of wine
- R3.90 more for a 750ml bottle of spirits including whiskey, gin or vodka
- 98c more for a pack of 20 cigarettes
- R5.47 more for a 23g cigar
Godongwana said the excise tax for wine, beer and spirits are 11%, 23% and 36% respectively.
Government will not increase the health promotion levy for 2023/24 to allow the sugar industry to restructure given challenges.
According to Godongwana, this is due to the difficult operating environment that the sugar industry has undergone from the impact of floods and social unrest.
Also read: Minimum wage increase pushed to R25,42 on 01 March



