Effects of duties on wine and brandy will be felt by industry’s 290,000 workers, Vinpro says
Wine producers say the hike in excise duties on wine and brandy is a major blow for the sector as it continues to struggle to make significant profits.Finance Minister Malusi Gigaba announced in his budget speech an excise tax increase of 8.5% for wine (including sparkling wine) and brandy, and 6% on fortified wine.Since the implementation of the current excise regime in 2002, tax rates on most alcoholic beverages have consistently increased above inflation annually.The wine industry has experienced major losses due to the prevailing drought in the Western Cape."The above-inflation excise tax is extremely disappointing, especially given the fact that the industry reached, and even exceeded, the tax incidence targets agreed upon in 2014," said Rico Basson, the MD of wine producers body Vinpro.He said South African grape producers had been under financial pressure for some time due to the prevailing drought and other economic challenges. Production costs have doubled in the past decad...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.