No sugar tax increase, alcohol and tobacco up
The old age and disability grants increase by R90 on 1 April
While the sugar industry will breathe a sigh of relief as the sugar tax remains unchanged for the next two fiscal years, excise duties on alcohol and tobacco will increase by 4.9%.
This was announced by Finance Minister Enoch Godongwana, who delivered the national budget speech on Wednesday.
The increase in excise duties means:
• A 340 millilitre can of beer increases by 10 cents;
• A 750 millilitre bottle of wine goes up by 18 cents;
• A 750 millilitre bottle of spirits will increase by R3.90;
• A 23 gram cigar by R5.47;
• And on a pack of 20 cigarettes, the duty rises 98 cents.
Godongwana said R66-billion will be allocated to Social Development over the medium term, with R36-billion to fund the extension of the Covid-19 social relief of distress grant (R350 grant) until 31 March next year.
“The old age and disability grants increase by R90 on 1 April and a further R10 on 1 October 2023. The result is a total increase to R2 090.
“The child support grant rises from R480 to R510 on 1 October, while the foster care grant increases from R1070 to R1 130 over the same period,” said the finance minister.
He said the general fuel levy and the Road Accident Fund levy will however not be increased this year.
“To ease the impact of the electricity crisis on food prices, the refund on the Road Accident Fund levy for diesel used in the manufacturing process, such as for generators, will be extended to manufacturers of foodstuffs. This takes effect from 1 April 2023 for two years,” said Godongwana.
“The personal income tax brackets will be fully adjusted for inflation, which will increase the tax-free threshold from R91 250 to R95 750,” he added.
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