Budget2021: Mboweni increases sin taxes

2021-Feb-24   07:52

Budget2021: Mboweni increases sin taxes Source: Brent Hofacker / Wikipedia

- Silver Sibiya

You will pay a few more for your favourite beverage, thanks to the increases announced in Finance Minister Tito Mboweni's budget vote speech.

Mboweni delivered the national budget in Parliament on Wednesday afternoon, announcing an 8% increase in the excise duties on alcohol and tobacco products.

β€œ40 ml can of beer or cider will cost an extra14c. 750ml bottle of wine will cost an extra 26c with immediate effect. A 750ml bottle of sparkling wine will cost an extra 86c. A bottle of spirits, including whiskey. gin or vodka will increase by R5.50c. Next... A packet of 20 cigarettes will be an extra 1.39c,” the finance minister said.

He added that 25 grams of piped tobacco will cost an extra 47 cents, while a 23 gram cigar will be R7.71 more expensive.

Mboweni sought to justify the increases.

"It is clear that excessive alcohol consumption can lead to negative social and health outcomes. Consumers do react to price increases, and higher prices should lead to lower consumption of alcohol products with positive spinoffs,” he said.

Mboweni also announced that R10 billion has been allocated for the country to buy vaccine to continue the fight against COVID-19.

β€œThe provincial equitable share will be augmented by R8 billion for provincial health departments in 2021/22 to deal with Covid-19. Of the R10.3 billion for vaccines, R2.4 billion is allocated to provincial departments of health to administer the Covid-19 vaccine programme. Government will also put in place a no-fault compensation fund to cover claims in the unlikely event of any severe vaccine injuries, allocations to which will be announced in due course," he said

Some of the biggest allocations of the budget went to Learning and Culture, R402.9 billion, which include Department of Basic Education and University Transfers, Social Development, R335.3 billion, Health received R248.8 billion, Economic Development received R207.5 billion, Peace and Security received R208.6 billion, and Community Development R218.8 billion.

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