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Sin tax goes up as expected

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There is going to be a hike in the taxes levied on several alcoholic beverages, cigarettes and tobacco. This was announced by Finance Minister Malusi Gigaba in his budget speech on Wednesday afternoon.

The so-called ‘sin tax‘ will rise by between 6% and 10%.

Some business owners in Polokwane have expressed different views on how the increase is likely to affect their businesses.

“It doesn’t actually boost the business, but whatever they add, we add on our side. We are the middle men. We buy the product and sell the product. So, if they rise their prices they normally give us the price list. We then add our percentage onto the current price … The prices of beer and cigarettes are going to affect the business because we have to increase the price. Our profit is gonna be low, so its gonna affect the business very very much.”

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