Cigarette, alcohol price hikes to hurt the pocket

Adults in South Africa consume more alcohol than those in most other countries. Picture: Helena Lopes/Pexels

Adults in South Africa consume more alcohol than those in most other countries. Picture: Helena Lopes/Pexels

Published Feb 23, 2023

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MPHO MUKOSI

Johannesburg - Minister of Finance Enoch Godongwana announced in his 2023 Budget speech that there would be an increase in sin tax, which means a rise in the price of alcohol and cigarettes.

Most South Africans are not pleased with the increase in prices, since most of them are already struggling and are not being paid enough in the first place.

During his speech, Godongwana announced that the price of a 340ml can of beer would rise by 10c, a 750ml bottle of wine by 18c, a 750ml bottle of spirits by R3.90, a 23g cigar by R5.47, and a pack of 20 cigarettes by 98c.

“Alcohol falls under sin tax. Under normal circumstances, I’d accept that when the government needs to raise money, they’ll have to start with the sin tax.

“However, the government doesn’t have a great track record of managing of public funds, so it seems unfair for consumers to have to bear the cost of the sin tax.

“For the first time since I started drinking, I’m considering cutting down on alcohol, so perhaps it’s not such a bad thing,” said one affected person, who asked to remain anonymous.

Francois van Schalkwk described the increase in the sin tax as ridiculous.

“It might be a good way to cut people down when it comes to taking these two things, like smoking less or drinking less, but at the end of the day the prices are rising very fast.

“I used to pay R13 last year for my box of cigarettes at the beginning of the year, and now I pay R23 for a pack. It’s not much difference, but I noticed it in only a few packets like Sharp, Remington Gold, and Kings, and so on, which are not sold by big outlets such as Pick n Pay and Spar, and so on, where better known brands like Winston, RG and Stuyvesant are sold,” said Van Schalkwyk.

“All those cigarette prices remain the same, which were R35 and up, considering the fact that the ‘cheaper’ cigarettes are also only sold at R5 shops. I personally think they are just taking advantage of ‘illegal’ cigarette brands,” he explained.

Most people believe they will not be able to drink at restaurants and pubs, since alcohol is more expensive there

“I will be buying alcohol and drinking it in the comfort of my own space. If alcohol will be expensive at liquor stores, what is going to be the price of it at a pub? At the same time, this will also be a loss for people who sell alcohol at restaurants,” said Tshiamo Babedi.

The Star

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