Minister of Finance Dr.Rets`elisitsoe Matlanyane has announced a new tax increase on both alcohol and tobacco.During the budget speech on Wednesday Dr.Matlanyane highlighted that the government increased  alcohol and tobacco levies to allow the administrative changes and business adjustments.

The government proposes increases of alcohol and tobacco levies by 2.5 percent and 5 percent respectively. However,Ms. Mots`elise Matlali  bar owner at Teyaneng told  the Agency in an interview that  the increase of tax on alcohol means the increase of prices.

Furthermore, Mr. Motlatsi Rasetsoto the tobacco distributor said the increase of tobacco tax is going to affect him negatively as he will not be able to purchase more tobacco as he used to.

Mr.Rasetsoto also indicated that he is already competing  with large businesses that sell with cheaper prices than his, now that the government is increasing tax on tobacco he is going to face yet another decline in profits.

The  increase of tax on the mentioned substances will however help the government to get significant  revenue and also there will be a decrease in high consumption of alcohol and tobacco especially among the youth.