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National Budget 2012

Smokers, drinkers to pay more

Wed, 22 Feb 2012 16:55

The next time you visit your favourite watering hole - be prepared to spend a little more on a glass of beer, wine and spirits.

Finance Minister Pravin Gordhan said in his Budget Speech that the increases in duties on tobacco and alcohol products will be between 5% and 8% this year.

“In respect of beer and spirits, an increased benchmark tax burden is proposed to be phased in over the next two years,” Gordhan said in Parliament.

The excise on spirits will increase by 20% to R36 for a 750 ml bottle this year. The tax on beer will go up by 10 % taking the price of a can 340ml of beer go up by R1.01. Consumers can expect to pay 8% more for a bottle of wine.

Also, with effect from October this year, an excise duty at a rate of 7% will apply to small aeroplanes and helicopters with a mass below 5 000kg. A duty of 10% will apply to motorboats longer than 10 meters. – BuaNews