{"id":753931,"date":"2024-02-21T15:47:20","date_gmt":"2024-02-21T13:47:20","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=753931"},"modified":"2024-02-21T15:47:26","modified_gmt":"2024-02-21T13:47:26","slug":"tax-hikes-for-lightbulbs-plastic-bags-cigarettes-and-alcohol-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/budget-speech\/753931\/tax-hikes-for-lightbulbs-plastic-bags-cigarettes-and-alcohol-in-south-africa\/","title":{"rendered":"Tax hikes for lightbulbs, plastic bags, cigarettes and alcohol in South Africa"},"content":{"rendered":"\n<p>Finance Minister Enoch Godongwana has announced that excise duties, A.K.A sin taxes, will be increased in South Africa, along with increases for plastic bags and lightbulbs.<\/p>\n\n\n\n<p>Speaking at the 2024 Budget, Godongwana said that the poor performance of South Africa&#8217;s economy has resulted in a sharp decline in tax revenue collection for 2023\/24, with R1.73 trillion of tax revenue in 2023\/24, R56.1 billion lower than estimated in the 2023 Budget.<\/p>\n\n\n\n<p>This shortfall was largely due to a drop in corporate profits and revenue from taxes on mining.<\/p>\n\n\n\n<p>That said, over the medium term, revenue projections are R45.6 billion higher than the 2023 MTBPS estimates following improved personal income tax and additional medium-term revenue proposals.<\/p>\n\n\n\n<p>The budget contains several measures to raise R15 billion in 2024\/25 to alleviate immediate fiscal pressure and support faster debt stabilisation, mainly through not raising the personal income tax brackets, rebates and medical tax credit for inflation.<\/p>\n\n\n\n<p>However, sin taxes were increased by the Treasury. <\/p>\n\n\n\n<p>For alcohol products, there were above-inflation increases of between 6.7% and 7.2% for 2024\/25: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A can of beer increases by 14 cents;<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A can of a cider and alcoholic fruit beverage goes up by 14 cents;<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A bottle of wine will cost an extra 28 cents;<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A bottle of fortified wine will cost an extra 47 cents;<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A bottle of sparkling wine will cost an extra 89 cents; and<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A bottle of spirits, including whisky, gin or vodka, increases by R5.53.<\/li>\n<\/ul>\n\n\n\n<p>In addition, the tobacco excise duties were increased by 4.7% for cigarettes and cigarette tobacco and by 8.2% for pipe tobacco and cigars, translating to: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A R9.51 increase for cigars;<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A 97 cent increase to a pack of cigarettes; and<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An extra 57 cents for a pipe of tobacco.<\/li>\n<\/ul>\n\n\n\n<p>Vapes were also not left unscathed as the excise duty on electronic nicotine and non-nicotine delivery systems, known as vapes, has increased from R2.90\/ml to R3.04\/ml &#8211; a 4.6% increase. <\/p>\n\n\n\n<p>This is a little less than the inflationary increase that PwC previously expected. Inflation jumped from 5.1% in December 2023 to 5.3% in January 2024. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"pcrFQOrL7w\"><a href=\"https:\/\/businesstech.co.za\/news\/finance\/753697\/inflation-ticks-higher-bad-news-for-eating-out-in-south-africa\/\">Inflation ticks higher &#8211; bad news for eating out in South Africa<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Inflation ticks higher &#8211; bad news for eating out in South Africa&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/finance\/753697\/inflation-ticks-higher-bad-news-for-eating-out-in-south-africa\/embed\/#?secret=OIxfiOFmIQ#?secret=pcrFQOrL7w\" data-secret=\"pcrFQOrL7w\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>In addition to the sin taxes, Treasury announced additional tax hikes for plastic bags and incandescent lightbulbs.<\/p>\n\n\n\n<p>The government proposes to increase the plastic bag levy from <strong>28c\/bag to 32c\/bag<\/strong> from 1 April 2024.<\/p>\n\n\n\n<p>To encourage the uptake of more efficient lighting such as light-emitting diode (LED) bulbs and reduce electricity demand, it proposes to raise the incandescent light bulb levy from<strong> R15 to R20 per light bulb<\/strong> from 1 April 2024. <\/p>\n\n\n\n<p>&#8220;This complements the phase-out of inefficient light bulbs and promotes compliance with the new energy efficiency standards published in May 2023 by the Department of Trade, Industry and Competition,&#8221; it said.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/budget-speech\/753915\/goodbye-rooftop-solar-tax-breaks-in-south-africa\/\" target=\"_blank\" rel=\"noreferrer noopener\">Goodbye rooftop solar tax breaks in South Africa<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Treasury is hoping that a lot of smaller tax hikes will add up to a bigger revenue boost in South Africa.<\/p>\n","protected":false},"author":95,"featured_media":641157,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13716],"tags":[26],"class_list":["post-753931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget-speech","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/753931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=753931"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/753931\/revisions"}],"predecessor-version":[{"id":753987,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/753931\/revisions\/753987"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/641157"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=753931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=753931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=753931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}