Alcohol, tobacco industries shocked as prices hiked on booze, cigarettes During his 2021 Budget speech on Wednesday, Finance Minister Tito Mboweni announced that drinkers and smokers will be paying 8% more. FILE: The South African Liqour Brand Owner s Association said kicking the industry while it s down on its knees would result in more jobs being shed. Picture: EWN
32 days ago
JOHANNESBURG – The alcohol and tobacco industries were not pleased with Finance Minister Tito Mboweni s Budget speech, reacting with shock as they were expecting some relief after the impact of numerous sale bans.
Drinkers and smokers will be paying 8% more for their choice of drink and tobacco product.
Daily news update: Budget 2021, SIU probe Mkhize aides and new name for Port Elizabeth – The Citizen citizen.co.za - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from citizen.co.za Daily Mail and Mail on Sunday newspapers.
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
Getty Images
The alcohol industry, which pays an average of R2.5 billion in excise tax every month, has been pleading with government to halt the annual increase this year, saying it would have to take drastic action to cut costs.
Excise tax is the largest cost for manufacturers and the industry contributes R172 billion (3%) to the country s GDP.
The industry says the 8% increase in alcohol duties will result in tens of thousands of job losses.
South Africa s alcohol industry says tens of thousands of jobs are on the line, following Finance Minister Tito Mboweni s announcement of an 8% excise tax increase on liquor and tobacco.
Alcohol industry releases data on cumulative impact of three alcohol bans, showing R36.3 billion in lost revenue Friday, 19 February, 2021 FTI Consulting
The cumulative impact of the three alcohol bans has put 200 200 jobs supported by the alcohol value chain at risk in the nation s informal and formal economy.
An assessment of the economic impact of the three alcohol bans in 2020, including the five-week ban between 29 December 2020 to 2 February 2021, which tracks the cumulative impact on the alcohol industry was completed on 12 February 2021, revealed the damaging financial implications of the Government s prohibition decree.
Kurt Moore, CEO, South African Liquor Brandowners Association (SALBA), said that not only is the industry and its people suffering, but the Government itself was experiencing considerable losses to the fiscus. According to the assessment, the tax revenue loss (excluding excise) to the fiscus from th