28 February 2013

Namibia: Sin Tax - Consumers to Pay

Photo: http://www.newera.com.na
A confident Minister of Finance Saara Kuugongelwa-Amadhila increased government spending to a record N$47.6 billion for the 2013/14 financial year.

INDULGING in a dop or a smoke comes at a heftier price today after South African Finance Minister Pravin Gordhan yesterday increased customs and excise duties by between 5,7% and 10% in his 2013 budget.

As Namibia is part of the Southern African Customs Union (Sacu), the increases are also effective here immediately.

A packet of 20 cigarettes is at least 60 cents more expensive, while the price of 340 ml of malt beer increases by at least 7,5 cents.

The price tag on a 750 ml bottle of spirits is at least N$3,60 more. The price of a 750ml bottle of unfortified wine is up by at least 15 cents, while 750ml of sparkling wine costs at least 56 cents more. Ciders and alcoholic fruit beverages are at least 7,3% more expensive.

Pipe smokers will have to cough up at least 32 cents more for 25g of tobacco.

Customs and excise duties are an important source of income for the Namibian government. At 64%, the duties will make up the bulk of revenue from indirect taxes in 2013-14, PricewaterhouseCoopers said in its budget analysis on Tuesday night.

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