Sin Tax Hikes Are In The Interest Of Health – Mboweni

The Finance Minister raised sin taxes in his 2021 budget, and it seems that there could be further price hikes still to come.

The increase in excise duties on cigarettes and alcohol was predicted by many, with Minister Tito Mboweni explaining their decision as one not only motivated by raising funds, but also in the interest of health.

The World Health Organisation released a paper that suggests that, predictably, that higher cigarette prices cause more people to quit smoking.

More telling is that within the budget review documents is a signal that smokers are in for further hikes.

In South Africa, around 40% of the price you pay for a box of cigarettes goes to the fiscus.

The WHO suggests that to achieve the health benefits, that should be closer to 70%.