‘DON’T TOUCH SIN TAX, ITS HIGH ALREADY’

MBABANE – While neighbouring South Africa has plans of reducing the wage bill and increasing sin tax, bar and bottle store owners pin their hopes on the local finance minister not to follow suit.

Following the presentation of South Africa’s Minister of Finance Tito Mboweni’s national budget, wherein he plans to reduce the wage bill by E37 billion and increase sin tax, bar owners feel that although the purpose of sin tax is to increase revenue, it would affect their business negatively. Therefore, they hope that Minister of Finance Neal Rijkenberg, would not consider this during the much anticipated budget speech which will take place on Wednesday afternoon.

Sin tax is the tax on items considered undesirable or harmful, such as alcohol and tobacco, candies, drugs, soft drinks, fast foods, coffee, sugar, gambling and pornography. This is done to pay for the damage to society caused by these goods. In addition, it (sin tax) is increased in an effort to lower use of those products and to increase and find new sources of revenue.

Oasis Bar bartender Sanele Dlamini, said the current price for alcohol at dealers was reasonable and mentioned that he wished they would remain the same.
“The prices of beer, wine and distilled spirits are currently reasonable and business is doing well as it stands. However, if the sin tax is increased this year, it would mean customers would have to opt for cheaper alcohol and some of them might even reduce the amount of alcohol they buy,” he said. On cigarettes, Dlamini said they were expensive at the rate dealers were charging and as a result, he also charged customers E2.50 per cigarette. He pointed out that it was expensive as customers complained about the high price. He further ascribed that he desired that Rijkenberg would not increase the tax prices at all.

Additionally, another bottle store owner said he wished the sin tax would not be increased. He said prices at bottle stores were generally higher compared to bars and this would minimise customers, as they would opt for them.
Meanwhile, alcohol and beer consumers also feel that if the sin tax was increased this year, they would have to reduce their consumption.

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