Cape Town – Smokers and drinkers will have to dig a little deeper into their pockets as Finance Minister Enoch Godongwana announced an increase of 4.9% in excise duties for cigarettes and alcohol, in line with the expected inflation rate.
Smokers will have to pay almost R1 more for a packet of 20 cigarettes while the increase in wine prices will see drinkers paying 9 cents to 31 cents extra for a 750ml bottle.
Cigar smokers will pay R5.47 more per 23g, while pipe tobacco will go up by 33c per 25g and cigarette tobacco by R1.10c per 50g.
Malt beer will go up 10 cents per 340ml can.
On illicit trade, Godongwana said that in the past three years the SA Revenue Service (Sars) had taken steps to enhance its effectiveness in combating illicit trade, particularly in tobacco.
“To this end, Sars has completed 2 316 seizures of cigarettes and tobacco products to the value of R598.8 million,” said Godongwana.
“An additional R18 billion worth of schedules and assessments have been raised, targeting syndicated tobacco-related crimes.”
Sars collected more than R1.2bn in revenue and handed over 92 cases for criminal proceedings with the National Prosecuting Authority, of which two resulted in successful convictions relating to tobacco smuggling syndicates.
The increases come hot on the heels of the Tobacco Products and Electronic Delivery Systems Control Bill of 2018 that was given the green light for submission to Parliament last month.
If the new bill comes into effect, smoking indoors, in a car or at home in the presence of a non-smoker will be illegal.
The bill is designed to address key issues related to smoking in indoor public areas, the display of tobacco products at point of sale, the use of electronic devices and the introduction of plain packaging for tobacco products.
Weekend Argus