Alcohol excise tax to start flowing again
The alcohol industry, which was left reeling from bans on liquor sales during the national lockdown and is now struggling to recover, says it will begin excise payments worth an estimated R2.5bn in October.
The industry was granted a 90-day deferment on tax payments after the reintroduction of the ban on alcohol sales in July. It pays roughly R2.5bn every month in excise tax. In 2019, the alcohol sector contributed R179bn to GDP, while indirect taxes (VAT, excise tax and customs duties) amounted to R72bn, or 5.6% of the government’s total income.