FINANCE Minister Pravin Gordhan’s budget on Wednesday (27/02/2013) yet again contained bad — but not unexpected — news for drinkers and smokers.
Mr Gordhan has raised excise duties on alcoholic beverages and tobacco products by up to 10%.
Excise duties on tobacco products are determined in accordance with a targeted total tax burden (excise duties plus VAT) of 52% of the retail price. For wine‚ clear beer and spirits‚ the targeted tax burdens (excise duty plus VAT) are 25%‚ 35% and 48%‚ respectively.
This year sees excise duties on sparkling wine increase 10% to R8.28/litre‚ on unfortified wine by 8% to R2.70/litre and on fortified wine by 5.7% to R4.85/litre.
For malt beer‚ excise duties are up 7.5% to R63.81/litre of absolute alcohol (or 108.48 cents per 340ml can)‚ and for alcoholic fruit beverages‚ duties are up 7.4% to R3.19/litre. Excise on spirits has been raised 10% to R122.80/litre of absolute alcohol — or R39.60 for a 750ml bottle.
Excise on cigarettes rises 5.8% to R10.92 per packet of 20‚ on cigarette tobacco by 10% to R12.16 per 50g‚ on pipe tobacco by 9.9% to R3.54 per 25g‚ and on cigars by 7% to R56.76 per 23g.
As was the case last year and in previous years‚ traditional beer escaped the excise tax net — perhaps a good enough reason to try it out as an alternative tipple. © BDlive 2013