Petrol price hike coming with increased fuel levy

Minister of Finance Tito Mboweni has delivered his 2019 Budget Speech, in which he has detailed tax hikes for South Africa.

“Fiscal prudence requires some tax changes. We propose additional revenue measures of R15 billion in 2019/20,” said Mboweni.

“There will be a slight upward adjustment of the tax-free threshold for personal income taxes, with no change in the current personal income tax brackets.”

The tax-free threshold increases from R78,150 to R79,000. This will raise R12.8 billion.

Mboweni also detailed how excise duties on alcohol and tobacco, and other hikes, will be implemented in the country. This is detailed in the list below.

  • Excise duty on a can of beer goes up by 12 cents to R1.74
  • A 750ml bottle of wine will have an excise duty of R3.15, which is 22 cents more.
  • The duty on a 750ml bottle of sparkling wine goes up by 84 cents to R10.16.
  • The duty on a bottle of whiskey will go up by R4.54 to R65.84.
  • A pack of 20 cigarettes goes up by R1.14 to R16.66.
  • The excise duty on a typical cigar will go up by about 64 cents to R7.80.
  • No change to the excise duty on sorghum beer.
  • Fuel levies will increase by 29 cents per litre for petrol and 30 cents per litre for diesel.

Mboweni stated that white bread flour, cake flour, and sanitary pads will be zero-rated for VAT purposes from 1 April 2019.

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Petrol price hike coming with increased fuel levy