Budget Speech 2024: Calls for sin tax increase grow

The Beer Association of South Africa has called for an excise increase of 4.9% for beer, in line with 2024’s projected inflation ahead of this year’s Budget Speech.

Finance Minister Enoch Godongwana is set to deliver the Budget Speech for the 2024/25 fiscal year in Cape Town on 21 February. 

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BEER ASSOCIATION WEIGHS IN ON UPCOMING BUDGET SPEECH 

The Beer Association said it welcomed the past two budget cycles with excise adjustments that were, on average, in line with projected inflation for that year. 

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According to the association, this has provided much-needed certainty to the industry. 

“The beer industry operates under a large and complex manufacturing ecosystem that relies on tax certainty emanating from excise duties to plan to optimise our high, fixed costs. 

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“We find it important to speak on excise adjustments, as it is an essential factor in allowing us to continue making a considerable contribution to the national economy,” the association said. 

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HOW MUCH WAS THE SIN TAX INCREASE IN 2023? 

In his 2022 Budget Speech, Minister Enoch Godongwana announced a general increase in the sin tax on alcohol and tobacco by between 4.5% and 6.5%. This year, the government proposed an increase in the excise duties of 4.9% in line with expected inflation.

• A 340ml can of beer now costs 10c more
• A bottle of wine increased by 18c more
• The cost of a bottle of 750ml spirits, including whisky, gin, or vodka, increased by R3.90
• A packet of 20 cigarettes cost 98c more
• The cost of a 23-gram cigar increased by R5.47