South Africa’s excise duty on spirits is on track to exceed R100 for a standard 750ml bottle if Finance Minister Enoch Godongwana implements the usual above-inflation increase during next week’s Budget Speech.

In the May 2025 Budget, the National Treasury increased excise duties on alcoholic beverages by 6.75%, following a consistent trend of annual hikes that have steadily pushed up costs for consumers. The adjustment, effective from April 1, affected beer, wine, and spirits, while traditional African beer remained untouched.

For producers of spirits, the pattern of rising taxes is a key concern ahead of the 2026 Budget. Across all major categories—including brandy, gin, vodka, whisky, and rum—the 750ml bottle remains the standard unit.

“At a tax level of R100 per bottle, government levies account for the largest portion of the retail price, representing roughly 55% to 65% of mainstream spirits’ cost to consumers. We believe the statutory price component cannot absorb further increases,” said Sibani Mngadi, corporate relations director at Diageo South Africa.

Over the past decade, excise duties on spirits have nearly doubled. Industry figures indicate that the tax burden has climbed from about R52 per bottle in 2016 to a potential level above R100 if another rise is approved.

The company also warned that persistent tax increases are driving growth in the illicit alcohol market.

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