Budget Speech 2024: Tax Increases on Alcohol, Vapes, and Tobacco in South Africa

On Wednesday afternoon, Finance Minister Enoch Godongwana gave his eagerly awaited budget speech.

Tax Increases on Alcohol, Vape, and Smoking in South Africa
It occurs in the midst of a challenging economic climate, increased living expenses, and high unemployment rates.

Alcohol Increases

Above-inflation increases of 6.7% to 7.2% are suggested for the excise levies on alcohol items year 2024–2025. This implies:

A bottle of wine will cost an additional 28 cents; a bottle of fortified wine will cost an additional 47 cents; a bottle of sparkling wine will cost an additional 89 cents; and a bottle of spirits, including whisky, gin, or vodka, will increase by R5.53. Cans of beer, cider, and alcoholic fruit beverages will all see price increases of 14 cents.

Moreover, smokers will pay more:

In addition, we suggest raising the tobacco excise taxes on cigarettes and tobacco products by 4.7% and on pipe tobacco and cigars by 8.2%. This corresponds to:

An additional 97 cents for a pack of cigarettes, R9.51 cents for cigars, and R57 cents for a tobacco pipe. You read correctly: vapers will also receive a higher salary.

“You’ll be pleased to learn that we are proposing to raise the excise tax on electronic devices known as vapes—which deliver nicotine and non-nicotine—to R3.04 per milliliter,” stated Enoch Godongwana.

Additionally, Godongwana reaffirmed on Wednesday that there will be an increase in permanent SASSA grants.

On Wednesday, Godongwana addressed the parliament with his 2024 budget speech.

To improve access and keep up with inflation, permanent social grants are raised:

Grants for the elderly, veterans of war, disabled, and care-dependent individuals will increase by R100. This sum will be split into three categories: an increase of R50 to the foster care grant, an increase of R20 to the child support grant, and R90 effective in April and R10 effective in October.

THE SRD GRANT WILL BE IMPROVED BY APRIL

“We recognize that the approximately 19 million South Africans who depend on these subsidies to survive are facing rising living expenses.

We have made the most progress in this area that the budget will allow. By April of this year, improvements to the COVID-19 Social Relief of Distress Grant will be made.