In the 2025 Budget Speech, Finance Minister Enoch Godongwana was expected to announce an increase to sin taxes, especially the price of a can of beer and cigarettes as has been the case in the previous years.
Finance Minister, Enoch Godongwana announced the increases when he delivered the Budget Speech for the 2025/2026 fiscal year on Wednesday, 12 March in Cape Town.
NO MENTION OF SIN TAX INCREASES IN 2025 BUDGET SPEECH
Excise duties increase every year. So, it came as a surprise that there were no increases in the price of alcohol, especially wine and spirits.
In his 2024 Budget Speech, the Finance Minister announced above-inflation increases of between 6.7 and 7.2%. In the 2025 Budget Speech, Godongwana did not mention any changes to sin taxes.
Here are the increases announced in 2024:
- A 14c increase to the price of a 340ml can of beer
- A bottle of wine increased by 28c in 2024
- The price of a bottle of sparkling wine increased by 89c
- A bottle of 750ml spirits, including whisky, gin, or vodka, increased by R5.53.
THE PRICE OF CIGARRETTES
In 2024, the government proposed tobacco excise duties to increase by 4.7% for cigarettes and cigarette tobacco and by 8.2% for pipe tobacco and cigars.
This translated to:
• A R9.51 cents increase for cigars;
• A 97 cents increase to a pack of cigarettes; and
• An extra 57 cents for a pipe of tobacco.
DO YOU SUPPORT THE MINISTER’S DECISION NOT TO INCREASE SIN TAXES IN THE 2025 BUDGET SPEECH
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
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