South Africa: Beer drinkers will pay 5% more for one can of beer

Smokers and alcohol drinkers have again been hard hit by Trevor Manuel, the finance minister, in his so-called 'sin taxes', South African Broadcasting Corporation (SABC) News communicated on February 15.

Manuel says the price of malt beer will go up by 5% per 340ml can. Wine will increase by 13c per 750ml bottle, while spirits will rise by R1.54 per 750ml bottle. Smokers will now pay 52c more on a packet of 20 cigarettes. These changes will take effect immediately. They are estimated to raise R1.4 billion in revenue.

Manuel handed individuals a R13.5 billion worth of tax relief this year. The relief means that individuals younger than 65 years of age and earning R40 000 or less per annum, will pay no income tax as from the beginning of next month. For taxpayers over the age of 65 the threshold is raised from R60 to R65 000.

However, the minister has again left traditional beer and beer powder untouched, earning him support at least among these drinkers.

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