Tobacco Industry Unimpressed by Sin Tax Increase
Written by Mfundo on 25 February, 2021
By: Sthulile Mdletshe
The Fair Trade Independent Tobacco Association (FITA) says the sin tax increase might take the already ailing economy backwards.
FITA Chairperson Sinehlanhla Mnguni says this increase will push manufactures to raise their prices which will be a burden on consumers.
Mnguni says this decision will push consumers back to buying illicit trade which they were already accustomed to during the hard lockdown period.
On Wednesday, Finance Minister Tito Mboweni announced an 8% increase on excise tax, including the tax collection from the alcohol industry.
“A packet of 20 cigarettes will be an extra R1.39c, 25 grams of piped tobacco will cost an extra 47c and a 23 gram cigar will be R7.71 more expensive,” states Mboweni.
Mnguni says the Tobbaco industry is still trying to recover from the lockdown sale ban.
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