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Sinners and motorists to pay up

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Cape Town - Smokers and drinkers will have to cough and splutter up more for their vices, according to the latest budget proposals.

Beer drinkers will pay seven cents more for a 340ml can.

A bottle of wine will cost 15 cents more, while the price of ciders and alcoholic fruit beverages is set to rise seven cents a litre.

A 750ml bottle of spirits will cost R3.60 more from April 1.

Those who prefer traditional African beer will, however, not be digging deeper into their pockets.

Tax on cigarettes increases by 60c, to R10.92 per packet of 20.

Motorists will feel the pinch again this year, paying a total of 23 cents a litre more for petrol from April 3.

The general fuel levy will go up by 15 cents a litre, with an additional eight cents a litre going to the Road Accident Fund.

For the first time in four years, shoppers are going to have to pay more for plastic bags.

The levy on plastic shopping bags goes up from four cents to six cents this year.

The environmental levy on incandescent light bulbs will also go up a rand, to four rand a bulb.

Those purchasing e-books or downloading music will also be affected.

The SA Revenue Service will require all foreign businesses supplying these services in South Africa to register as VAT vendors.

“In the case of imported services or digital supplies, such as e-books or music, no border post or post office can perform the function as collecting agent, as is the case with physical goods,” according to the 2013 Budget Review.

The document says this means consumers are buying services on websites without paying VAT.

Treasury says the new proposals will bring South Africa in line with international trends. It cites regulations adopted by the European Union, which state that those supplying digital goods must register for VAT in the country where consumers reside.

Sapa

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