Increased sin taxes on vaping, smoking and drinking: What South Africans need to know
South Africans wanting to indulge in a night out that includes a few drinks or perhaps a pack of cigs, will have to dig deeper thanks to increases in sin tax.
Image: Freepik
Finance Minister Enoch Godongwana said in the 2025 Budget that government will impose more taxation on tobacco and alcohol products in the coming year.
In November 2024, government published a discussion paper that proposed adjustments to the alcohol excise taxation policy framework, including the introduction of a three-tier progressive excise duty rate structure for wine and beer.
In the Budget, Godongwana said that government will hold public consultations on the new excise framework during 2025.
Considering that the details of the new alcohol excise taxation framework will be finalised only after the 2025 Budget, government proposes to increase excise duties on alcoholic beverages by 6.75% for 2025/26.
“The guideline excise tax burden as a percentage of the retail selling price of the most popular brand within each tobacco product category is currently 40%,” according to the Budget Review.
Godongwana said that government proposes a 4.75% increase in tobacco excise duties for cigarettes, cigarette tobacco, and electronic nicotine delivery systems (vaping).
The proposed increase for pipe tobacco and cigars is 6.75%.
The minister said that to ease the administrative burden of implementing adjustments on Budget Day, in future years adjustments to excise duties will take effect from 1 April.
So how much will it cost you to smoke and drink?
| Product | Product Current Excise Duty Rate | Proposed Excise Duty Rate | Percentage Change (Nominal) |
| Malt beer | R135.89 / litre of absolute alcohol (R231.02 / average 340ml can) | R145.07 / litre of absolute alcohol (R246.61 / average 340ml can) | 6.75 |
| Traditional African beer | R7.82 / litre | R7.82 / litre | - |
| Traditional African beer powder | R34.70c / kg | R34.70 / kg | - |
| Unfortified wine | R5.57 / litre | R5.95 / litre | 6.75 |
| Fortified wine | R9.40 / litre | R10.04 / litre | 6.75 |
| Sparkling wine | R17.83 / litre | R19.03 / litre | 6.75 |
| Ciders and alcoholic fruit beverages | R135.89 / litre of absolute alcohol (R231.02 / average 340ml can) | R145.07 / litre of absolute alcohol (R246.61 / average 340ml can) | 6.75 |
| Spirits | R274.39 / litre of absolute alcohol (R88.49 / 750ml bottle) | R292.91 / litre of absolute alcohol (R94.46 / 750ml bottle) | 6.75 |
| Cigarettes | R21.77 / 20 cigarettes | R22.81 / 20 cigarettes | 4.75 |
| HTPs sticks | R16.33 / 20 sticks | R17.10 / 20 sticks | 4.75 |
| Cigarette tobacco | R24.47 / 50g | R25.63 / 50g | 4.75 |
| Pipe tobacco | R7.53 / 25g | R8.03 / 25g | 6.75 |
| Cigars | R125.91 / 23g | R134.40 / 23g | 6.75 |
| ENDS/ENNDS | R3.04 / ml | R3.18 / ml | 4.75 |
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