Excise duties on alcohol, tobacco increase by 4.9%: Godongwana

Finance Minister Enoch Godongwana has proposed a 4.9% increase in excise duties on alcohol and tobacco, in line with expected inflation. Godongwana was tabling the 2023 Budget in Cape Town’s City Hall on Wednesday.

The excise duty on a 340ml can of beer to increase by 10 cents, a 750ml bottle of wine will be increased by 18 cents, a 750ml bottle of spirits will be increased by R3.90, a 23g cigar will be increased by R5.47, and the excise duty on a pack of 20 cigarettes will increase by 98 cents.

Combat trade

The South African Revenue Service (SARS) has taken several steps to enhance its effectiveness in combating illicit trade, particularly in tobacco over the past three years. SARS has completed 2 316 seizures of cigarettes & tobacco products to the value of R598.8 million.

An additional R18 billion worth of schedules and assessments have been raised, targeting syndicated tobacco-related crimes.

Furthermore, the revenue collector has collected more than R1.2 billion in revenue and handed over 92 cases for criminal proceedings with the National Prosecuting Authority (NPA) of which two resulted in successful convictions relating to tobacco smuggling syndicates.

Due to the difficult operating environment for the sugar industry from the impact of flooding and social unrest, the health promotion levy will remain unchanged for the following two fiscal years, to enable the industry to diversify or restructure.

Minister Enock Godongwana’s speech: 

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Source: SABC News (sabcnews.com)