Sin-tax increase a hammer blow to recovering businesses Updated
Nothando Mkhize
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The Finance Minister has hiked the prices of booze and cigarettes and businesses say this was the last thing they needed.
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The Finance Minister has hiked the prices of booze and cigarettes and businesses say this was the last thing they needed.
Finance Minister Tito Mboweni announced a hefty 8% tax increase on alcohol and tobacco products during his budget speech yesterday.
You will have to fork out another R5. 50 for a 750ml bottle of spirits.
A packet of 20 cigarettes will cost R1.39 more. SA Liquor Brand owners Association s Sibani Mngadi says it s another setback for businesses.
Alcohol bans cost liquor industry more than R36 billion in lost sales - study
18 February 2021 6:49 PM wine industry
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The annualised GDP loss for SA is almost R52b, according to a report on the bans economic impact released by alcohol industry.
The government lifted South Africa s third ban on alcohol sales this month, but the damage to the economy can t be undone.
The liquor industry has reported R36.3 billion in lost revenue due to the prohibition.
Tax revenue loss (excluding excise) amounts to R29.3 billion (2.3% of tax revenue).
It puts South Africa s annualised GDP loss due to the booze bans at R51.9bn (1% of total GDP measured at market prices).
Liquor traders request meeting with President Ramaphosa over booze ban
By Sisonke Mlamla
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Cape Town - The Presidency has confirmed that it has received a request from the liquor traders, to discuss the impact of the alcohol sale ban on the industry with President Cyril Ramaphosa.
Liquor Trader Formations convener Lucky Ntimane called on Ramaphosa to allow for the resumption of alcohol sales with immediate effect, primarily off-consumption (takeaways), and support for taverns and shebeen permit holders by means of financial assistance to the value of R20 000 per outlet, and a moratorium on liquor licence fees payable for a period not less than a year.