Budget 2022: Alcohol, tobacco prices WILL increase by 4.5 and 6.5%

South Africans will now have to dig a bit deeper into their pockets when they buy alcohol and tobacco as these have increased effective immediately.

Finance Minister, Enoch Godongwana delivered his maiden National Budget Speech on Wednesday, 23 February 2022. 

EXCISE DUTY ON ALCOHOL AND TOBACCO INCREASE

The alcohol and tobacco industries contribute around 10 percent in taxes.

Excise duties increase every year. So, it was expected that alcohol, especially wine and spirits would now cost a few cents or rands higher. 

Despite the calls made by the alcohol industry and bodies for alcohol excise duties to remain the same, government has increased these by between 4.5 and 6.5%.

Godongwana said government is also proposing to introduce a new tax on vaping products of at least R2.90 per milliliter from 1 January 2023.

A new tax will also be introduced on beer powders.

“After three years of no changes, the health promotion levy will be increased to R2.31 cents per gram of sugar,” Godongwana said.

HERE’S HOW MUCH YOU WILL NOW PAY FOR ALCOHOL AND CIGARETTES:

From today, these are the extra cents and rands South Africans will be paying for alcohol and tobacco:

• 340ml can of beer will cost 11c more
• A bottle of wine will cost will 17c more expensive
• A 750ml bottle of sparkling wine will cost an extra 76c
• A bottle of 750ml spirits, including whisky, gin or vodka will increase by R4.83
• A packet of cigarettes will cost an extra R1.03
• 25 grams of piped tobacco will cost an extra 37c; and
• A 23 gram cigar will now cost R6.77 more

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