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'Sin taxes' up by between 4.5% and 6.5%

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Finance Minister Enoch Godongwana says excise duties on alcohol and tobacco will increase by between 4.5% and 6.5% from Wednesday.

Tabling his maiden budget policy statement in Parliament, Godongwana announced the following increases:

. A 340ml can of beer or cider will cost 11c more;
• A 750ml bottle of wine will be 17c more expensive;
• A bottle of sparkling wine will cost an additional 76c;
• And a bottle of spirits will be R4.83 more expensive;
• A packet of cigarettes will cost an additional R1.03;
• 25 grams of piped tobacco will cost an extra 37c; and
• A 23 gram cigar will be R6.77 more expensive.

He said the government also proposes to introduce a new tax on vaping products of at least R2.90
per millilitre from 1 January 2023 and a new tax will also be introduced on beer powders.

"After three years of no changes, the health promotion levy will be increased to 2.31
cents per gram of sugar," he said.

Godongwana also announced that the carbon tax rate will increase from R134 to R144, effective from 1 January 2022.

"As required by legislation, the carbon fuel levy will increase by 1c to 9c per litre for petrol, and 10c per litre for diesel, from 6 April 2022," he said.

The first phase of the carbon tax, with substantial allowances and electricity price neutrality, will be extended to 31 December 2025.