Minister of Finance Neal Rijkenberg says the newly introduced Alcohol and Tobacco Levy seeks to boost and improve the local alcohol industry.
He was explaining what the new levy, known as the sin tax, was—its role in safeguarding public health and addressing related social costs—during the Finance In Focus session yesterday.
The Bill, passed more than a month ago, is set to increase the cost of imported alcohol and will take effect on September 1.
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The minister emphasised that government was not trying to increase taxes. Instead, he said they were keeping taxes the same—or even reducing them—for industries that are ready to grow the economy.
He added that unemployment and poverty remain the country’s biggest challenges, and economic growth is being used as a vehicle to address them indirectly rather than through short-term fixes.
“The cost of drunk-driving, smoking-related health issues, and accidents costs everyone, especially hospitals and road safety,” Rijkenberg explained. “For that reason, when looking at ways to raise revenue while also discouraging harmful practices, sin tax was the best option.”
He clarified that no new taxes were being added on locally produced alcohol, which he said Eswatini produces in significant quantities.
Imported Alcohol and Tobacco Costs
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Imported alcohol: Extra 3% levy.
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Imported tobacco: Levy increased from 7% to 12% (5% jump).
He gave an example:
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A bottle of imported whiskey that previously cost E100 will now cost E103.
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A box of cigarettes that hypothetically cost E100 will now cost E112 after the levy increase.
Public Health Focus
The minister stressed that tobacco is harmful, causing emphysema and other health complications. He encouraged smokers struggling with addiction to seek external help, noting that the first step is making the decision to quit.
“These charges are going to impact everybody from September 1,” he concluded.
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