FINANCE Minister Enoch Godongwana said in the 2025 Budget that government will impose more taxation on tobacco and alcohol products in the coming year.

In November 2024, government published a discussion paper that proposed adjustments to the alcohol excise taxation policy framework, including the introduction of a three-tier progressive excise duty rate structure for wine and beer.

In the Budget, Godongwana said that government will hold public consultations on the new excise framework during 2025.

Considering that the details of the new alcohol excise taxation framework will be finalised only after the 2025 Budget, government proposes to increase excise duties on alcoholic beverages by 6.75% for 2025/26.

“The guideline excise tax burden as a percentage of the retail selling price of the most popular brand within each tobacco product category is currently 40%,” according to the Budget Review.

Godongwana said that government proposes a 4.75% increase in tobacco excise duties for cigarettes, cigarette tobacco, and electronic nicotine delivery systems (vaping).

The proposed increase for pipe tobacco and cigars is 6.75%.

The minister said that to ease the administrative burden of implementing adjustments on Budget Day, in future years adjustments to excise duties will take effect from 1 April.

So how much will it cost you to smoke and drink?

Product	Product Current Excise Duty Rate	Proposed Excise Duty Rate	Percentage Change (Nominal)
Malt beer	R135.89 / litre of absolute alcohol (R231.02 / average 340ml can)	R145.07 / litre of absolute alcohol (R246.61 / average 340ml can)	6.75
Traditional African beer	R7.82 / litre	R7.82 / litre	-
Traditional African beer powder	R34.70c / kg	R34.70 / kg	-
Unfortified wine	R5.57 / litre	R5.95 / litre	6.75
Fortified wine	R9.40 / litre	R10.04 / litre	6.75
Sparkling wine	R17.83 / litre	R19.03 / litre	6.75
Ciders and alcoholic fruit beverages	R135.89 / litre of absolute alcohol (R231.02 / average 340ml can)	R145.07 / litre of absolute alcohol (R246.61 / average 340ml can)	6.75
Spirits	R274.39 / litre of absolute alcohol (R88.49 / 750ml bottle)	R292.91 / litre of absolute alcohol (R94.46 / 750ml bottle)	6.75
Cigarettes	R21.77 / 20 cigarettes	R22.81 / 20 cigarettes	4.75
HTPs sticks	R16.33 / 20 sticks	R17.10 / 20 sticks	4.75
Cigarette tobacco	R24.47 / 50g	R25.63 / 50g	4.75
Pipe tobacco	R7.53 / 25g	R8.03 / 25g	6.75
Cigars	R125.91 / 23g	R134.40 / 23g	6.75
ENDS/ENNDS	R3.04 / ml	R3.18 / ml	4.75

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Budget 2025: Increased sin taxes on vaping, smoking and drinking