Liquor industry spokesperson Sibani Mngadi said alcohol excise tax was imposed at the point of production, meaning the industry was liable for excise duties worth R2.5bn in July and another R2.5bn in August on products that are in warehouses and cannot be sold.
President Cyril Ramaphosa announced the immediate reinstatement of the ban on alcohol sales last Sunday, citing a sharp increase in trauma unit admissions since the ban was lifted on June 1. This had put extra pressure on facilities that were struggling to cope with the coronavirus pandemic. The ban was definitely political. It points to the police and other law enforcement agencies being unable to police properly, especially around shebeens and drunk driving.Mboweni's spokesperson, Mashudu Masutha, had not responded to questions about the liquor industry's appeal by the time of going to press.
The fiscus is also not collecting excise duties on tobacco, since a ban on the sale of these products was imposed when the lockdown was first introduced at the end of March. It is estimated that R4bn in tobacco excise duties has already been lost.