SA's booze industry seeks tax relief after new sales ban

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SA’s alcohol industry, reeling under a renewed liquor sales and distribution ban since the end of December, on Tuesday called for a deferment of excise duty to stave off a wave of business closures and job losses.

President Cyril Ramaphosa extended an existing countrywide ban on alcohol sales and distribution on Monday, saying it has helped to reduce trauma cases in hospitals and keep staff and facilities available for Covid-19 patients.“The SA wine industry faces a grim picture of business closures, job losses, downward price pressure and structural damage to subsectors,” Vinpro, which represents 2,500 local wine producers, said in a joint statement issued by several alcohol associations in the country.

The country’s alcohol industry pays an average R2.5bn per month in excise tax, the statement said, adding that the ban has left the industry in a “precarious” state.

 

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