Finance Minister Enoch Godongwana says government will introduce a new tax of R2.90 on vaping products from January next year.
The Minister also announced on Wednesday that excise duties on alcohol and tobacco will increase by between 4.5% and 6.5%.
Godongwana tabled his maiden Budget Speech before a sitting of Parliament on Wednesday.
“Government also proposes to introduce a new tax on vaping products of at least R2.90 per millilitre from 1 January 2023. A new tax will also be introduced on beer powders,” he said.
In its Budget Review document, National Treasury said following public consultations, government proposes to apply a flat excise duty rate of at least R2.90 per millilitre to both nicotine and non‐nicotine solutions.
“The proposal will be included in the 2022 Taxation Laws Amendment Bill for further consultation before being introduced from 1 January 2023.”
Treasury said the current excise duty regime applies a flat excise rate for traditional African beer powder of 34.7c/kg.
“There are similar products in the market. In the interest of equity, these products will be included in the tax net with an excise equivalent to the powder rate from 1 October 2022.”
The Minister said excise duties on alcohol and tobacco will increase by between 4.5 and 6.5 %. The increases mean that as from today:
• a 340ml can of beer or cider will cost 11c more;
• a 750ml bottle of wine will be 17c more expensive;
• a bottle of sparkling wine will cost an additional 76c;
• a bottle of spirits will be R4.83 more expensive;
• a packet of cigarettes will cost an additional R1.03;
• 25 grams of piped tobacco will cost an extra 37c; and
• a 23 gram cigar will be R6.77 more expensive. – SAnews.gov.za