The duty on a
packet of 20 cigarette will for example rises with 6.7% from R12.43 tot
R13.24 and that on a can of beer (340ml) with 8.5% from 124c tot 135c.
The price of 1
liter of wine will rise by 8% (24c), 1 liter of sparkling wine will also
be 8% (78c) more expensive and spirits 8.2% (394c for a bottle of 750
ml) more expensive. The duty on ciders and alcoholic fruit beverages
will rise by 8.5% (R6.21 for 1liter).
Cigars smokers will also pay 6.7% more (R4.68 for 23g) and pipe smokers 7% more (27c for 25 g).
Tax rates on
alcoholic beverages have been consistently increased beyond inflation
since 2002. The 2016 Budget continues this trend, with excise duty rate
increases of between 6.7% and 8.5%. Mixtures of grain-fermented
beverages (such as beverages made from maize) with an alcohol content
ranging from 2.5% to 9% by volume are proposed as an additional excise
duty category.
These beverages will be taxed at the beer rate based on absolute alcohol content.
Historical changes
in duty structure and regulatory requirements have led to brandy being
at a competitive disadvantage relative to other spirits. To level the
playing field, government proposes that a 10% lower excise duty, based
on litres of absolute alcohol content, be applied to potstilled and
vintage brandy, and phased in over the next two years.
The excise duty on
sparkling wine has risen well above inflation in recent years, mainly
due to the influence of high-priced imports.
As a result, the
difference between the excise duties on sparkling wine and still wine
has increased substantially. It is proposed that the current difference
between the excise duties on natural and sparkling wine be maintained by
pegging the sparkling wine excise rate at 3.2 times that of natural
unfortified wine.
The excise
adjustments for cigarettes, cigarette tobacco and pipe tobacco are
attributable to inflation-linked price increases for the most popular
brands in each category. A review of tobacco product taxation will begin
in 2016/17, and will consider both existing and non-traditional tobacco
products and their alternatives, such as e-cigarettes.
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source: fin24
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