Drinkers and smokers to pay more for their vices

@SITHOLEEXPRESS

Sthembiso Sithole


Cigarettes will cost 68c more per pack of 20. (SABC)

Excise duties on alcoholic beverages (especially beer, sparkling wine and spirits) will increase by between 6.2 and 12 percent. There will be no rise in the excise duty on traditional African beer or beer powder, Finance Pravin Gordhan said during his 2014 budget speech.

Gordhan says:  “An increase in excise duties on alcoholic beverages and tobacco products are proposed, adding 9 cents to the price of a 340ml can of beer and 68 cents to a packet of 20 cigarettes.”

The Minister also announced an R4.80 increase of a bottle of whiskey.


The Minister chuckled as he said, “Members who want to leave right now to have their shot of whiskey before the increase, all these increases in sin tax come into effect immediately.”

Personal income tax relief amounts to R9.25 billion and about 40 per cent of the relief goes to South Africans  earning below R250 000 per year.

On the fuel levy and Road Accident Fund, the minister proposed an increased that will take effect from the second of April.

“In recognition of recent increases in the imported cost fuel, the general fuel levy increase is limited to an inflation-related 12 cents per litre, and the road accident fund levy will increase by 8 cents per litre.”

According to the Minister,  great strides have been made to improve the tax system.

Gordhan says: “We have also improved the fairness of the tax system by taxing residents on their worldwide income and taxing capital gains.”

These changes have brought the South African tax system more in line with international principals and have substantially broadened the country’s tax base.


This article first appeared on SABCNews site. It was done by Sthembiso Sithole during Finance Minister Pravin Gordhan's 2014 budget speech in Parliamnet.