Sin taxes, fuel levy set to increase
There was bad news for smokers and drinkers on Wednesday as Finance Minister Tito Mboweni announced an increase in the so-called sin taxes.
Tito Mboweni delivered his maiden budget speech in the National Assembly on Wednesday afternoon.
“Madam Speaker, excise duties on alcohol and tobacco will be increased, as follows:
1) The excise duty on a can of beer goes up by 12 cents to R1.74
2) A 750ml bottle of wine will have an excise duty of R3.15, which is 22 cents more.
3) The duty on a 750ml bottle of sparkling wine goes up by 84 cents to R10.16
4) The duty on a bottle of whiskey will go up by R4.54 to R65.84
5) A pack of 20 cigarettes goes up by R1.14 cents to R16.66 6.
The excise duty on a typical cigar will go up by about 64 cents to R7.80,” says Mboweni.
However, the price of sorghum beer will remain unchanged.
South Africans will also contribute more fuel due to an increase in the fuel levy.
This could hit hard-pressed consumer hard as the price of petrol is set to increase in March.
“Fuel levies will increase by 29c/l for petrol and 30c/l for diesel in 2019,” said Mboweni.
Some good news for social grant recipients as government allocates R567 billion in allowances.
“In 2019, the grant values will increase as follows:
1)R80 increase for old age, disability, war veterans and care dependency grants.
2) R40 increase for the foster care grant to R1 000.
3) The child support grant will increase to R420 in April and to R430 in October,” adds Mboweni.
The Minister has also announced a tax change for those who did not previously qualify to pay tax.
This is estimated to raise R12.8 billion.
"There has been an upward adjustment of the tax-free threshold for personal income taxes, with no change in the current personal income tax brackets," Mboweni said.