FIRST TAKE | Budget Speech: Cigarettes, beer up in line with inflation

Finance Minister Enoch Godongwana tabled the 2026 National Budget on Wednesday, 25 February, setting out government’s spending plans and fiscal strategy for the year ahead.

Godongwana said increases to certain excise duties are unavoidable.

Tobacco Products

Excise duties on tobacco products will increase in line with inflation. This includes excise duties on electronic nicotine and non-nicotine delivery systems.

As a result:

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

Alcoholic Beverages

Excise duties on alcoholic beverages will also increase in line with inflation:

• A 340ml can of beer or cider will increase by 8 cents
• A 750ml bottle of wine will rise by 15 cents
• A 750ml bottle of spirits will increase by R3.20

Fuel Levies

Fuel levies will similarly be adjusted in line with inflation:

• The general fuel levy will increase by 9 cents per litre for petrol and 8 cents per litre for diesel
• The carbon fuel levy will rise by 5 cents per litre for petrol and 6 cents per litre for diesel
• The Road Accident Fund levy will increase by 7 cents per litre

The adjustments are expected to contribute additional revenue to the fiscus while keeping increases broadly aligned with inflation.

How to Watch

South Africans can follow the Budget Speech live via radio, television and online streaming platforms.

The main online channels include:

• Parliament of South Africa (Parliament TV)
• South African Broadcasting Corporation (SABC)

This breaking news story is being updated and more details will be published shortly. Please refresh the page for the fullest version.