Treasury grants alcohol industry request for excise tax suspension

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The National Treasury has granted a request by the alcohol industry for a deferment of excise tax on liquor.

Alcohol industry spokesperson Sibani Mngadi said in a statement on Tuesday that the Treasury had proposed a 90-day suspension for the payment of excise tax on alcohol.Mngadi said the sector had last month applied for the deferment of R5.1bn in excise tax due to the SA Revenue Service until the ban on sales is lifted.

“With the reintroduction of the ban on all alcohol sales with immediate effect from July 12, the industry and its entire value chain faced a crippling financial crisis,” he said. “The sustainability of the sector, now and in the post-Covid-19 era, was dependent on this deferment if further job losses are to be avoided.”

 

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