BUDGET 2003
Smokers, drinkers to pay more
26 February 2003
Finance Minister Trevor Manuel has told drinkers and smokers that they will be coughing up more, as taxes on alcohol and tobacco products will be increased further this year.
In his Budget speech in Cape Town on Wednesday, the minister said increases in some of the indirect taxes would bring additional revenue of approximately R907-million into the country’s reserves.
Manuel said the cost of beer and cider will be raised by 10%, bringing the excise duty to 48 cents per 340ml or an average increase of 4.4 cents per can.
According to Manuel, duties on unfortified and sparkling wine will be raised by 11% and duties on fortified wine will increase by 10%, while duties on spirits will also increase by 10%, to bring the average total duty to R13 per bottle.
The minister also revealed that, for the second year running, sorghum beer and sorghum flour duties would not be increased.
Manuel added that taxes on tobacco products
would go up by 11%, thus increasing the excise tax to R3.89 per packet of 20 cigarettes.
Source: BuaNews
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