Sin taxes up

27 Mar 2019 18:50pm
WINDHOEK, 27 MAR (NAMPA) - Government has increased sin taxes as agreed in terms of the Southern African Customs Union Agreement, taking into account sales volumes and total tax burdens on respective excisable commodities.
Minister of Finance, Calle Schlettwein said this when he tabled the N.dollars 60.1 billion 2019/20 National Budget in the National Assembly on Wednesday.
The excise duty on beer is increasing by 12 per cent to N.dollars 1.74, while the excise duty on a 750 millimetre (ml) bottle of wine goes up by 22 cents to N.dollars 3.15.
Meanwhile, the excise duty on a 750 ml bottle of sparkling wine is increasing by 84 cents to N.dollars 10.16, whereas the excise duty on a bottle of whiskey will increase by N.dollars 4.54 up to N.dollars 65.84.
“A pack of 20 cigarettes goes up by N.dollars 1.14 cents to N.dollars 16.66 cents (and) excise duty on a typical cigar will go up by about 64 cents to N.dollars 7.80,” Schlettwein added.
The minister also said a number of excise levies and duties will be introduced for revenue purposes.
These include an increase in the fuel levy by 25 cents per litre for all levied fuel products, while coverage of the export levy will be expanded to include specific agricultural, forestry and game products and other mining products currently not covered.
At the same time, there will be an increase in the export levy for dimension stones from the current 2 per cent maximum to 15 per cent.
An export levy of 15 per cent for timber will be introduced.
The minister added that a new Environment Levy of 5 per cent of the cost of primary cells and batteries will be introduced.
Furthermore, tax proposals for domestic revenue purposes are anticipated to generate approximately N.dollars 400 million.
“Income tax changes will come into effect in 2020 after drafting and tabling of the specific tax proposals,” Schlettwein said.
The excise duties will become effective upon the tabling and gazetting of the schedules.
(NAMPA)
SP/AS/HP