The increases in excise duties on alcoholic beverages and tobacco products – also known as “sin tax” – will bring in more than R1.3-billion in revenue.
The cost to you, the consumer, will be a nominal increase of 8.5% in excise duty on tobacco products and between six and 10% on alcohol.
The current excise duty on malt beer, ciders and alcoholic fruit beverages is R86.39 a litre; this will increase to R95.03 a litre, which is a nominal increase of 10%.
The excise duty on a box cigarettes (20s) is currently R14.30. It will increase to R15.52.
Also expect to pay more for cars, cellphones and other luxury goods which attract ad valorem excise duty, which is a tax levied on commodities as a percentage of their value.
The ad valorem excise duty on motor vehicles will increase from 25% to 30% from April 1.
The big squeeze
In terms of direct tax, the minister may not have upped the income tax rates or introduced new rates for the wealthy, but he is probably going to squeeze more income tax out of your pay packet no matter what you earn.
The only people who won’t pay more tax are those earning below about R420 000 a year (about R35 000 a month), who received an increase at the beginning of the year of around 3%.
If your increase was higher, the increase in your income will probably result in you incurring more tax than last year.
Your income is more highly taxed as you earn more – different rates apply to different brackets.