Beer industry calls on Mboweni for tax relief to save jobs and livelihoods

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To help rebuild the local beer industry, Basa urged Finance Minister Tito Mboweni to make a commitment not to increase excise taxes for the forthcoming financial year.

Cape Town - The Beer Association of South Africa has called on Finance Minister Tito Mboweni to offer the industry some tax relief ahead of his budget speech scheduled for Wednesday.

"At the very least, we call on him to commit to a below-inflation increase in excise taxes on beer. We need to save jobs and livelihoods, but we cannot do so without any targeted relief from government," Basa said. "We have seen small businesses and craft breweries take the greatest of hits, with a survey conducted by our member, the Craft Brewer’s Association, indicating that 87.5 percent of craft breweries were at risk of shutting down following the third blanket ban on alcohol sales. The majority of these businesses have no certainty of survival beyond the end of February," Basa said.

Since the beginning of the pandemic, the beer industry had contributed to mitigating the economic effects of the lockdown on the poor and homeless. Over four million meals had been served to hungry South Africans, using craft brewers’ funds, premises, staff, and distribution networks.

 

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