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Smokers, drinkers to choke on hike

Feb 22 2012 14:34 Sapa

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Cape Town - Smokers will have to fork out 58 cents more for a packet of 20 cigarettes, Finance Minister Pravin Gordhan announced in his 2012/13 budget on Wednesday.

Drowning one's sorrows in alcohol will also cost more, with a 750ml bottle of spirits set to increase by a hefty R6, a 340ml can of beer by 9c, and a litre of wine by 18c, he said.

Higher so-called sin taxes will also affect the very rich or those who splurge on boats and planes.

From October, the ad valorem excise tax on small aeroplanes and helicopters weighing less than 5 000kg will be 7%, while a 10% tax will apply to long motorboats and sailboats.

Gordhan also offered gamblers a tip, with a proposed national tax on gross gambling revenue from April next year.

This will take the form of a 1% levy "on a uniform provincial gambling tax base". A similar levy may apply to the national lottery.

 
 
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