Finance Minister Tito Mboweni, has announced in his 2020 Budget Speech government plans to tax heated tobacco products at a rate of 75% of cigarette excise rate with immediate effect.
Every year, Treasury punishes the sinners with increases on duties on alcohol and tobacco products.
But in this year’s budget speech, there was an added smack, targeting vapers.
From now on, those who vape or vapers will have to dig deeper into their pockets for a puff.
A new category for heated tobacco products will be introduced under the excise duties.
Up til now, vapers and users of e-cigarettes paid no tax for their vice.
But in his Budget Speech, Mboweni announced a new tax on vapers.
It will come in at 75% of the tax rate on cigarettes.
“In line with the Department of Health policy, we will start taxing heated tobacco products, for example, hubbly bubbly.”
Government is also planning to introduce a tax on e-cigarettes next year.
As for those smokers who prefer their nicotine in a more traditional form, they can expect to pay 74 cents a packet more for cigarettes, 40 cents more for 25 grams of pipe tobacco and R6.73 more for a 23g cigar.
