SA Lockdown: Liquor industry calls for another tax break

Alcohol brand owners are to apply for a deferment of excise duties until the sales ban is lifted. The industry pays over R2-billion in excise taxes for locally produced and imported products. Thulasizwe Simelane talks to SA Liquor Brand Owners Association Chairperson, Sibani Mngadi. #eNCA Courtesy #DStv403

JOHANNESBURG - The embattled liquor industry wants another tax break from excise duties, after a third liquor ban imposed by the government, to help curb the spread of COVID-19.

The industry pays the South African Revenue Services an average R2.5-billion per month in excise tax for locally produced and imported products.

READ: Link liquor excise tax increase to inflation: Salba

The tax is being imposed at the point of production, as normal, despite the current ban on alcohol sales in the country.

In July and August 2020 the government granted a deferment of at least R5-billion Rand in excise tax payments.

The industry has had to pay back the tax at a later stage.

The Liquor Brandowners Association's Sibani Mngadi explains the industry's challenge in the video above.


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