SA BUDGET SPEECH 2021: Drinkers and smokers to pay much more for their sins

• Price increase is with immediate effect
• Increased price might reduce consumption – Mboweni

Alcohol drinkers and smokers will pay much more for their sins from today after Finance Minister Tito Mboweni presented his 2021 Budget to Parliament on Wednesday.

Mboweni announced that with immediate effect an 8 percent increase in the excise duties on alcohol and tobacco products.

He also said that from today:

• A 340ml can of beer or cider will cost an extra 14c
• A 750ml bottle of wine will cost an extra 26c
• A 750ml bottle of sparkling wine an extra 86c
• A bottle of 750 ml spirits, including whisky, gin or vodka, will increase by R5.50
• A packet of 20 cigarettes will be an extra R1.39c
• 25 grams of piped tobacco will cost an extra 47c.
• And a 23 gram cigar will be R7.71 more expensive

“It is clear that excessive alcohol consumption can lead to negative social and health outcomes. Consumers do react to price increases, and higher prices should lead to lower consumption of alcohol products with positive spinoffs,” Mboweni said.

SOURCE: IOL

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