Sin-tax increase a hammer blow to recovering businesses
The Finance Minister has hiked the prices of booze and cigarettes and businesses say this was the last thing they needed.
The Finance Minister has hiked the prices of booze and cigarettes and businesses say this was the last thing they needed.
Finance Minister Tito Mboweni announced a hefty 8% tax increase on alcohol and tobacco products during his budget speech yesterday.
You will have to fork out another R5. 50 for a 750ml bottle of spirits.
A packet of 20 cigarettes will cost R1.39 more. SA Liquor Brand owners Association's Sibani Mngadi says it's another setback for businesses.
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"They did not consider the needs of the industry to recover. We would prefer if the minister considered a kind of inflation on the adjustment which should have been 4.2%"
Snenhlanhla Mnguni from Fair Trade Independent Tobacco Association says the increase may seem marginal.
"But with the current status quo around border management and the law enforcement agencies to police illicit practice such as smuggling, the impact on legitimate players on this fiscus of this increase will be considerable."
