Sin Taxes to increase

08 Mar 2017 18:50pm
WINDHOEK, 08 MAR (NAMPA) – Government’s levies on alcohol and tobacco, Sin Taxes', are set to increase following the tabling of the 2017/18 National Budget by Finance Minister, Calle Schlettwein in Parliament on Wednesday.
As expected, the retail prices of such commodities will force consumers to dig deeper into their pockets.
Schlettwein said the excise duties on imported goods of the same class or kind, are being applied within the common customs areas agreement of the Southern African Customs Union (SACU).
SACU ministers of finance in 2002 agreed to the increase of customs duties to such imported goods, as per Article 21 of the SACU Agreement.
Malt Beer will be increased by 12 cents (c) per 340 millilitres (ml); unfortified wine will go up by 23c per 750ml; and fortified wine by 70c per 750ml.
Sparkling wine will increase by 70c per 750ml, while ciders and alcoholic fruit beverages will go up by 12c per 340ml.
Spirits will increase by 443c per 750ml, while cigarettes will go up by 106c per packet, cigarette tobacco 119c per 50 grams (g) and pipe tobacco 40c per 25g.
‘Sin taxes’ are imposed with the dual purpose of increasing government revenue and discouraging the consumption of affected products that in many cases lead to preventable and non-communicable diseases.
The public’s consumption of the mostly imported goods also strain a country’s foreign reserves that used used the purchase the sinful products.
(NAMPA)
KM/LI/CT