Alcohol, tobacco industries slam new âpunishingâ taxes Siyanda Ndlovu
File picture. Shoppers purchase alcohol at Makro in Crown Mines, Johannesburg, on 18 August 2020. Picture: Tracy Lee Stark The industries are already on their knees due to the impact of the alcohol and tobacco sales bans.
The South African alcohol and tobacco industry has slammed the 8% increase in excise tax, announced by Finance Minister, Tito Mboweni during Wednesday’s 2021 Budget Speech, saying it will further strain the both industries and drive people towards the illicit market.
South African liquor Brandowners Association (SALBA) CEO Kurt Moore emphasised that tax adjustments did not take into consideration a significant increase in the size and efficiency of the illicit mark
Alcohol, tobacco, hospitality industries look to Mboweni to ease struggles The alcohol industry recently reported that it lost R36.3 billion in sales revenue as a result of the three lockdown-related bans. FILE: Finance Minister Tito Mboweni delivers his Medium-Term Budget Policy Speech in Parliament on 28 October 2020 in Cape Town. Picture: GCIS
36 days ago
CAPE TOWN – South Africa s alcohol and tobacco industries are hoping that Finance Minister Tito Mboweni will not increase excise taxes in the coming Budget speech, following huge losses as a result of the COVID-19 lockdowns.
Industries and companies will be looking to the minister on Wednesday afternoon, hoping for further government interventions to help them turn things around.
Daily Maverick 168 weekly newspaper.
South Africa is experiencing an exacerbation of illicit trade at a time when the economy is at its weakest.
“Unemployment is at 31%, poverty levels are more than 50%, youth unemployment is higher than 50% and our inequality levels in society are the most unequal in the world. When you add illicit trade to that picture, the situation is increasingly dire,” said Busi Mavuso, chief executive of Business Leadership SA.
She was speaking at a webinar organised by Business Leadership SA on illicit trade.
Mavuso said the ban on tobacco alone translated to a loss of R35-million a day for the fiscus. “Our national budget deficit is more than R350-billion. With businesses closing down and thousands of job losses, South Africans are looking at government to assist with stimulus packages to help businesses rebuild and survive. In that environment, the loss of fiscal revenue and tax revenue could not have come at a worse time.”