ZIMBABWE'S drinkers will not pop and gulp as much as they would have wanted to in the new year following government plans to raise excise duty on spirits. Finance minister Tendai Biti on Wednesday doubled the "sin duty" charged on heavy alcoholic beverages as government battles to raise revenue in the coming year.

But it will not be entirely gloom and doom for boozing Zimbabweans this season. Biti also granted a US$400 tax-free bonus, a gesture analysts say will fatten workers pockets ahead of the season.

"Honourable members would recall that during the Mid-Term Fiscal Policy Review I announced an upward review of excise duty on spirits from 15% to 20%," Biti told parliament.

He added: "Notwithstanding the upward review, the rate of excise duty remains relatively low compared to levels obtaining in the region. I, therefore, propose to increase the rate of excise duty on spirits from 20% to 40%, with effect from January 1 2010. Furthermore, measures to strengthen anti-smuggling will be put in place." The proposed increase on excise duty will double prices of spirits currently as low as $3 for a 750ml bottle.

After experiencing a not-so merry festive season last year due to hyperinflation and a liquidity crisis, prices will be determining factor in choosing the plethora of spirits currently stocked in supermarkets and bottle stores across the country.

"Excise duty collections amounted to US$44,6 million against a target of US$42, 6 million. Major contributors to this revenue head include fuel, beer, wines and spirits which accounted for US$37,5 million," Biti added.

"The bulk of excise duty collection was contributed from fuel and growth in volumes of beer, as a result of increased capacity utilisation from 25% in January to about 75% by September 2009 for these sub-sectors."

Already retailers and departmental stores are singing jingle bells in anticipation of more sales.

Apart from introducing sin duty on booze, Biti also had pleasant news for the economy projecting Zimbabwe's economy would grow by 7% next year.