MBABANE – Minister of Finance Neal Rijkenberg has explained the reasoning behind the recently introduced levy on alcohol and tobacco, saying it is both a revenue measure and a tool to discourage harmful consumption.
Speaking during his “Finance in Focus” update, Rijkenberg confirmed that Parliament passed the Alcohol and Tobacco Levy Amendment Act 2025, which comes into effect on 1 September 2025. Under the new law, the levy on imported alcohol rises from 7% to 10%, while imported tobacco products increase from 7% to 12%. Locally produced alcohol, however, remains unchanged at 2%.
The Minister stressed that the government deliberately avoided raising taxes across the board, aiming instead to protect jobs, stimulate investment, and ensure more disposable income remains in people’s pockets. “We are trying to grow the economy to tackle our two biggest challenges, which are unemployment and poverty,” he said.
Rijkenberg explained that alcohol and tobacco were targeted because of the “sin tax” principle, where the broader public bears the social and health costs of consumption. He cited the burden of treating smoking-related illnesses in hospitals and the financial impact of alcohol-related accidents on the roads as examples of costs borne by society.
The Minister further clarified that the levy protects local industries. “We produce alcohol in Eswatini, and we want to promote value addition and job creation here. That is why the rate for local alcohol remains unchanged,” he noted.
For consumers, the increase means, for example, that a bottle of imported whisky previously costing E100 will now cost E103, while a pack of imported cigarettes priced at E100 will rise to E105.Beyond the revenue boost, the government hopes the measure will encourage healthier lifestyles. Rijkenberg advised citizens to use the higher costs as an opportunity to cut down on excessive consumption.
“Addictions like alcohol and tobacco have a negative impact on one’s well-being. Shaking them is difficult, but the first step is making the decision to change,” he said.
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