The South African alcohol industry has called on the finance minister to put measures in place which will improve and benefit the alcohol industry. The budget speech, which is taking place on the 23 February 2021, is expected to grow the economy and create jobs.
Bree Association of South Africa (BASA) said the Minister needs to provide relief to the alcohol industry. This will in turn ensure sustainability and profitability of the industry. The alcohol industry is one of the leading contributors in the South African economy.
According to BASA, the seven months of alcohol ban has affected many retailers and they are struggling to recover and get up on their feet. The alcohol industry suffered huge losses as it was forced to shutdown numerous times during the hard lockdown. Thousands of taverns in the townships received no relief funds from the government and are trying to make it back on their feet.
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Liquor traders and tavern owners are calling on the finance minister to heed their calls and give them a tax break. They expect him to announce other tax reliefs in the budget speech. Gugulethu businessman Lefa Mapilo owns a bottle store and has been running it for three decades now. As one of the many tavern owners in his community, Lefa is desperate for support from the government.
The Chief Executive of South African Brand Association (SALBA), Kurt Moore, said although the excise rates have quadrupled since 2000, the World Bank has shown that the total per capita consumption has not changed over the same period.
Source IOL, ENCA, Image from IOL
