On 21 February 2024, the Finance Minister tabled the rate of excise duty amendments on prepared foodstuffs, beverages, spirits, vinegar, and tobacco, which were effective from 14:27 on the day.
The excise duty amendment relates to “104.00 PREPARED FOODSTUFFS; BEVERAGES, SPIRITS AND VINEGAR; TOBACCO”, and “Item 104.01 19.01 Malt extract: food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40 per cent by mass of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of headings 04.01 to 04.04, not containing cocoa or containing less than 5 per cent by mass of cocoa calculated on a totally defatted basis not elsewhere specified or included.”
The summary of the amendments are:
Alcohol products excise duties had above inflation increases of between 6.7% and 7.2%, which for the individual products means:
- A can of beer increases by 14 cents;
- A can of a cider and alcoholic fruit beverage goes up by 14 cents;
- A bottle of wine will cost an extra 28 cents;
- A bottle of fortified wine will cost an extra 47 cents;
- A bottle of sparkling wine will cost an extra 89 cents; and
- A bottle of spirits, including whisky, gin or vodka, increases by R5.53.
Tobacco excise duties increased by 4.7% for cigarettes and cigarette tobacco, and by 8.2% for pipe tobacco and cigars, which means:
- A R9.51 cents increase for cigars;
- A 97 cents increase to a pack of cigarettes; and
- An extra 57 cents for a pipe of tobacco.
In addition there was an increase of the excise duty on electronic nicotine and non-nicotine delivery systems, known as vapes, to R3.04 per millilitre.
The excise duty amendments are accessible at:
www.sars.gov.za/wp-content/uploads/Embargo/Tariffs/2024/Legal-LSec-CE-TA-2024-25-%E2%80%93-Taxation-Proposals-tabled-by-Minister-of-Finance-on-21-February-2024-at-14h27.pdf