Prices of cigarettes, tobacco products, beer, wine and spirits are set to increase following government’s decision to raise excise duties on alcohol and tobacco products by 3.39%, in line with Article 21 of the Southern African Customs Union (SACU) Agreement.
The new excise rates took effect on 25 February 2026 and are expected to filter through to retail prices as manufacturers and retailers adjust to the higher taxes.
Announcing the changes, Finance Minister Ericah Shafudah said the adjustments are part of Namibia’s obligations under the SACU framework, which requires member states to harmonise excise duties on selected goods.
Under the revised rates, excise duties on all tobacco products have increased by N$3.39. The excise tax on a pack of 20 cigarettes has risen from N$22.81 to N$23.58.
Pipe tobacco duties have increased from N$321.37 to N$332.26 per kilogram net, while cigars now attract excise duty of N$6,041.72 per kilogram net, up from N$5,843.68. The increase also applies to cigarette tobacco and electronic nicotine and non-nicotine delivery systems.
“Lastly, in conformity with Article 21 of the SACU Agreement, the following excise duties on the consumption of alcohol and tobacco took effect on 25 February 2026. It is proposed that excise duties be increased by N$3.39 for all tobacco products, including cigarettes, cigarette tobacco, electronic nicotine and non-nicotine delivery systems,” Shafudah said.
Excise duties on alcoholic beverages have also been increased by 3.39% for the 2026/27 financial year.
The duty on sparkling wine has risen from N$19.03 to N$19.68 per litre, while spirits now attract excise duty of N$302.84 per litre of absolute alcohol, up from N$292.91.
Clear (malt) beer duties have increased from N$145.07 to N$149.98 per litre of absolute alcohol. Ciders and alcoholic fruit beverages are now taxed at N$149.98 per litre of absolute alcohol, compared with N$145.07 previously.
“It is proposed that excise duties on alcoholic beverages be increased by 3.39% for 2026/27,” Shafudah said.
The increases form part of SACU-aligned annual adjustments aimed at harmonising excise taxation across member states. Government said consumers can expect the higher excise duties to be reflected in prices in the coming weeks.
