February 21, 2024

Forgive us for our sins!

Minister Enoch Godongwana tabled budget speech this afternoon
Photo: GCIS

Just like every other year, smokers and drinkers will be hit hard in the pocket with another sin tax hike as government tries to raise billions in taxes for spending. Minister Enoch Godongwana tabled the 2024 Budget Speech earlier today at the Cape Town City Hall, where he announced an increase in execise duties for alcohol for 7.2 % while tobacco products saw an increase of 8.2%.


Drinkers will pay 14 cents more for a can of beer, 28 cents more for wine, 14 cents more for cider and alcohol fruit beverages, 47 cents more for fortified wine, R5,53 for whiskey, gin and vodka while a bottle of sparkling wine will cost an extra 89 cents. The Minister further increased tobacco excise duties by 4.7% for cigarettes and 8.2% for pipe tobacco. "Members of Parliament the weak performance of our economy has resulted in a sharp deterioration in tax revenue collection for 2023/24. At R1.73 trillion, tax revenue for 2023/24 is R56.1 billion lower than estimated in the 2023 Budget. The shortfall is largely due to the decline in corporate profits and revenue from taxes on mining," said Godongwana. The Minister added that over the medium term, revenue projections are R45.6 billion higher than 2023. "This budget contains tax measures that will raise R15 billion in 2024/25 to alleviate immediate fiscal pressure and support faster debt stabilisation. For alcohol products excise duties, above-inflation increases of between 6.97 and 7.2 per cent for 2024/25 are proposed," he said.


Godongwana also increased social grant. From the 1st April, old age, war veterans, disability and care dependency grants will get a R100 increase. The amount will be divided into R90 from April and R10 in October. Foster care grant will be increased by R50 and a R20 increase for child support grant. Godongwana said the government is sensitive to the increase in the cost of living for South Africans who rely on the grants to make ends meet. "Work is currently underway to improve the R350 Social Relief of Distress Grant by April this year. National Treasury will work with the Department of Social Development in ensuring that improvements in this grant are captured in the final regulations. These improvements will be within the current fiscal framework. For the extension of the grant beyond March 2025,"

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