Sin Tax goes up while Finance Minister confesses to a decline in revenue collection

Johnathan Paoli

Finance Minister Enoch Godongwana said the weak performance of the South African economy has resulted in a sharp deterioration in tax revenue collection for the past financial year while  delivering the 2024 Budget speech on Wednesday at Cape Town City Hall.

Godongwana said the R1.73 trillion tax revenue for 2023/24 was R56.1 billion lower than estimated in the 2023 Budget and the shortfall was largely due to the decline in corporate profits and revenue from taxes on mining.

He said the medium term revenue projections were R45.6 billion higher than the 2023 Mid-Term Budget projection estimates from last year which increased personal income tax and additional medium term revenue proposals.

For alcohol products excise duties, above-inflation increases of between 6.7 and 7.2% for 2024/25 was proposed, which meant that:

• A can of beer increases by 14 cents;

• A can of a cider and alcoholic fruit beverage