Excise duties on alcoholic beverages have been increased by between 9,4% and 20% as part of the government’s 2005/06 Budget, according to Minister of Finance Trevor Manuel.
Announcing the increases on Wednesday, which take effect immediately, Manuel said they represent a continuation of the government’s policy of phasing in the agreed tax incidence on various products (excise duties plus value-added tax) of 23% on natural wine, 33% on clear beer and 43% on spirits.
Excise duty on unfortified wine and sparkling wine will see the largest increases (20% each on a nominal basis, 15,8% real), with unfortified wine rising to 140,52 cents per litre from 117,1 cents per litre, and sparkling wine increasing to 387,99 cents per litre from 323,32 cents per litre.
Traditional African beer (sorghum-based) will not experience any duty hikes. Malt beer, meanwhile, is set for a duty increase of 9,5% in nominal terms (5,3% real), to R33,65 per litre of absolute alcohol from R30,73 previously. This represents a rise to about 57,2 cents per average 340ml can from 52,24 cents.
Spirits, on the other hand, will incur a duty increase of 10% in nominal terms (5,8% real) to 50,42 cents per litre of absolute alcohol from 45,84 cents previously, and fortified wine will see a 13% nominal increase (8,8% real).
Finally, ciders and alcoholic fruit beverages will experience a 9,4% nominal increase (5,2% real), to 168,24 cents per litre from 153,74 cents. — I-Net Bridge