No new tax measures – but you will pay more if you drink and smoke

Consumers of alcohol and tobacco products will pay 8% more in excise duties.

• In light of improvements in tax revenue collections in recent months, government has withdrawn a proposal to introduce tax measures to raise revenue by R40 billion over the next four years.
• However, this year it will implement increases to indirect taxes – mainly an 8% increase in excise duties on tobacco and alcohol as well as inflation-linked increases in the fuel levy.
• Tax revenue estimates are R99.6 billion higher than what was projected in October 2020 – reducing the tax revenue shortfall to R213 billion.

South Africans have been spared increases on their direct taxes, but they will have to fork out more money for alcohol and tobacco products.