South Africa: Alcohol industry welcomes inflation-linked sin tax increases

Alcohol producers have expressed strong support for the government's decision to restrict sin tax increases to inflation rates, emphasising that such predictable adjustments are essential for maintaining industry stability and combating illicit trade, IOL.co.za reported on February 25.

Finance Minister Enoch Godongwana announced that these increases in "sin taxes" are necessary, despite a more optimistic revenue forecast for the country.

As a result, the tax on tobacco products will rise in line with inflation in 2026/27, including taxes on electronic nicotine and non-nicotine delivery systems, Godongwana announced.

• The tax on a pack of 20 cigarettes increases from R22.81 to R23.58.
• Pipe tobacco rises by 28 cents per 25 grams.
• Cigarette tobacco increases by 87 cents per 50 grams.
• Cigars increase by R4.56 per 23 grams.

Excise duties on alcoholic beverages will also increase at inflationary levels.

• A 340ml can of beer or cider increases by 8 cents.
• A 750ml bottle of wine rises by 15 cents.
• A 750ml bottle of spirits increases by R3.20.
• Inflation is currently running at 3.5%.

Heineken Beverages said the minister’s approach reflected consideration of economic pressures and the rapid growth of illegal alcohol sales.

Millicent Maroga, corporate affairs director at Heineken Beverages, said inflation-linked increases promote fairness, stability, and long-term sustainability across alcohol categories.

Maroga said keeping excise adjustments predictable helps narrow the price gap between legal and illicit products, strengthening enforcement and compliance efforts.

Heineken also welcomed the announcement of the National Illicit Economy Disruption Programme, saying the company looks forward to partnering with the government.

26 February, 2026