Africa-Press – Eswatini. Government has officially announced the introduction of a sin tax on alcohol and tobacco, a bold move designed to boost economic growth while improving public health. Minister of Finance, Neal Rijkenberg, explained that the Alcohol and Tobacco Levy, which takes effect on September 1, 2025, seeks to discourage harmful consumption habits, reduce addiction rates, and ease the burden on national health and safety systems.
Why the Sin Tax?
According to the Finance Minister, the levy is not merely about raising revenue but about addressing social costs. Alcohol abuse and tobacco-related illnesses weigh heavily on hospitals, road safety, and families. Drunken driving accidents and smoking-related diseases translate into national expenses that impact every citizen. By implementing this tax, the government aims to discourage harmful consumption habits while redirecting resources toward building a stronger economy.
What Will Change?
Imported Alcohol: The levy on imported alcohol has risen from 7% to 10%. Locally produced alcohol, however, remains unchanged at 2%, a deliberate move to support Eswatini’s homegrown breweries and encourage value addition within the country.
Imported Tobacco: With no domestic tobacco production, imported cigarettes and tobacco products will now face a levy of 12%, up from the previous 7%. This 5% increase is expected to make smoking less attractive, particularly to the youth.
Protecting Local Industry, Creating Jobs
Government’s decision to shield locally produced alcohol from the new tax highlights its commitment to nurturing Eswatini’s industries. By keeping local rates low, Eswatini’s breweries and distilleries remain competitive, safeguarding jobs and opening doors for new opportunities. As the Minister noted, local alcohol brands are increasingly entering the market, even new rum brands launched recently, yand the government sees this as a sector that can thrive under fair protection.
A Healthier, More Prosperous Eswatini
Beyond economics, this policy is about well-being. The Minister strongly encouraged citizens to use the levy as motivation to drink responsibly and cut down on tobacco use. “A little bit of alcohol may not be a problem, but too much damages health, fuels addiction, and undermines well-being,” he explained. On tobacco, he was even more direct: “It’s bad for health. Emphysema and other diseases destroy lives. We encourage our people to reduce or quit – and to seek help where necessary”.
Positive Outlook
The sin tax sends a clear message: Eswatini values life, health, and sustainable growth. While those who indulge in imported alcohol and tobacco will feel a financial pinch, the broader benefits – safer roads, healthier communities, and more jobs from growing local industries – are expected to far outweigh the costs.
In a time when many countries wrestle with balancing revenue needs and social responsibility, Eswatini has chosen a path that does both: discouraging destructive habits while empowering local industry and protecting the nation’s future.
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