If you’re a smoker or enjoy a cold beer after work, you might want to brace yourself. The government has announced increases in sin taxes on alcohol and tobacco, meaning your favourite drinks and smokes are about to get more expensive.
Here’s what you need to know, straight from the 2025 Budget Speech by Finance Minister Enoch Godongwana.
What’s Changing?
In his speech, Minister Godongwana confirmed that taxes on alcohol and tobacco products will go up. These increases are part of the government’s annual adjustments to keep up with inflation and to discourage the harmful effects of smoking and excessive drinking.
Here’s the breakdown:
- Beer: A 6-pack of beer will cost 60 cents more.
- Wine: A bottle of wine will cost 18 cents more.
- Spirits: A bottle of spirits (like whiskey or vodka) will cost R5.30 more.
- Cigarettes: A pack of 20 cigarettes will cost R1.74 more.
Why the increase?
The Minister explained that these tax hikes serve two main purposes:
- Public Health:
- “These increases are designed to discourage harmful consumption of alcohol and tobacco,” said Godongwana.
- By making these products more expensive, the government hopes to reduce smoking and excessive drinking, which are linked to serious health problems like lung disease, liver damage, and cancer.
- Revenue Generation:
- “The additional revenue from these taxes will help fund critical public services, particularly healthcare,” the Minister added.
- The money raised from sin taxes will go towards improving healthcare services, which are under strain due to alcohol- and tobacco-related illnesses.
What Does This Mean for You?
While these increases might seem small, they add up over time, especially if you’re a frequent buyer. For example, if you buy a 6-pack of beer every week, you’ll end up paying about R31.20 more per year. If you smoke a pack of cigarettes a day, you’ll pay an extra R635.10 per year.
The Minister said that these tax increases are part of a broader strategy to balance public health and revenue needs.
- Public Health: “We need to reduce the burden of alcohol- and tobacco-related diseases on our healthcare system,” said Godongwana.
- Revenue for Services: “The funds raised will help us improve healthcare and other essential services for all South Africans,” he added.
Should You Quit?
If you’ve been thinking about cutting back on alcohol or quitting smoking, now might be the perfect time. Not only will you save money, but you’ll also be doing your health a favour.
As the Minister put it: “These tax increases are not just about raising revenue. They’re about encouraging healthier choices and reducing the strain on our public health system.”
