Calls growing for finance minister not to hike excise tax on alcohol
National Liquor Traders Association convener, Lucky Ntima, has called on government to give businesses in the sector some relief.
FILE: Finance Minister Enoch Godongwana delivers his maiden Medium-term Budget Policy Statement in Parliament on 11 November 2021. Image: GCIS.
CAPE TOWN - There are growing calls for the finance minister not to increase excise tax on liquor when he delivers his Budget Speech on Wednesday.
Ahead of the 2022 National Budget Address on Wednesday, South African Breweries (SAB) has called on government to implement an excise adjustment that is in line with inflation.
This, SAB said, would give, in particular small businesses in the sector, some relief following the impact of the COVID-19 pandemic.
National Liquor Traders Association convener, Lucky Ntima, has called on government to give businesses in the sector some relief.
"We've now gone back and said we want a zero percent increase because that will help us to sustain our businesses but also aid in our recovery efforts and assist us in making profitability that we can maintain the jobs we support in our space," Ntima said.
Beer Association of South Africa's CEO, Patricia Pillay, said that additional taxes may push users to seek cheaper alternatives like illicit alcohol.
"We were over 200 before lockdown and now we're sitting at a very low 150 craft brewers. We had 30% of craft brewers shut down," Pillay said.
The global beer sector has supported more than US$3 billion in tax revenues in South Africa in 2019.