Budget Speech 2025: Here’s the new cost of a can of beer
As confirmed in the 2025 Budget Speech, there will be an increase to sin taxes. Here’s how much a can of beer will now cost you.
As expected in the 2025 Budget Speech, a can of beer will now cost a few cents more.
Finance Minister, Enoch Godongwana delivered his delayed Budget Speech for the 2025/2026 fiscal year on Wednesday, 12 March in Cape Town.
GODONGWANA CONFIRMS INCREASE IN SIN TAXES DURING BUDGET SPEECH FOR 2025/2026
Excise duties increase every year. So, it didn’t come as a surprise that alcohol, especially wine and spirits, will now cost a few cents or rands higher.
In his 2024 Budget Speech, the Finance Minister announced above-inflation increases of between 6.7 and 7.2%. In the 2025 Budget Speech, Godongwana announced a 6.75% increase which comes into effect immediately.
Here are the confirmed increases:
- A 340ml can of beer will now cost 16c more compared to 14c in 2024
- A bottle of wine increased by 48c compared to 28c in 2024
- The price of a bottle of sparkling wine increased by 89c in 2024 and will now cost 98c more
- A bottle of 750ml spirits, including whisky, gin, or vodka, increased by R5.53 and will now cost R5.97 more
In simple terms, this is how much alcohol will now cost:
- Unfortified wine is currently at R5.57 / litre and the proposed excise duty rate is R5.95 / litre.
- Fortified wine is currently at R9.40 / litre and the proposed excise duty rate is R10.04 / litre.
- Sparkling wine is currently at R17.83 / litre and the proposed excise duty rate is R19.03 / litre.
- Ciders and alcoholic fruit beverages are currently at R135.89 / litre of absolute alcohol (231.02c / average 340ml can) and the proposed excise duty rate is R145.07 / litre of absolute alcohol (246.61c / average 340ml can).
- Spirits are currently at R274.39 / litre of absolute alcohol (R88.49 / 750ml bottle) and the proposed excise duty rate is R292.91 / litre of absolute alcohol (R94.46 / 750ml bottle).
THE PRICE OF CIGARRETTES
In 2024, the government proposed tobacco excise duties to increase by 4.7% for cigarettes and cigarette tobacco and by 8.2% for pipe tobacco and cigars.
This translated to:
• A R9.51 cents increase for cigars
• A 97 cents increase to a pack of cigarettes; and
• An extra 57 cents for a pipe of tobacco.
During the 2025 Budget Speech, Godongwana announced a 4.75 – 6.75% increase which also comes into effect immediately.
- Smokers will now pay an extra 50c for a 25g piped tobacco
- R1.04 for a pack of 20 cigarettes
- An extra R8.49 for a 23g cigar
- Vapers will pay an extra 14c per ml of vape fluid.
- Cigarettes are currently at R21.77 / 20 cigarettes and the proposed excise duty rate is R22.81 / 20 cigarettes.
- Cigarette tobacco is currently at R24.47 / 50g and the proposed excise duty rate is R25.63 / 50g.