The National Liquor Traders Association said it was disappointed with the increase in excise duties.
Speaking to 702, the association's convener Lucky Ntimane said Godongwana spoke to them before the budget and they know he had a tough balancing act to do.
“However, we are disappointed that we are seeing these increases that are marginally above inflation,” said Ntimane.
“What this means is that the illicit market, which is above R20bn per annum, is going to celebrate because they won't be taking any access duty this time around and people are going to move there to buy. They are the real winners in this budget.”
Ntimane said it was time for the government to do away with the term “sin tax” because it is anti-constitutional and does not bring dignity to the trade.
Last year, the SA Liquor Brand owners Association (Salba) said the four bans placed on liquor sales during the Covid-19 pandemic cost the country’s GDP an estimated R64.8bn.
This excluded the cost of recent looting in KwaZulu-Natal and Gauteng. More than R500m in liquor stock was looted during violence and destruction in the two provinces.
Salba chairperson Sibani Mngadi said the four bans on alcohol sales resulted in a total loss in retail sales revenue of R45.1bn, or equivalent to 15.8% of the sector’s projected sales for 2020 and 2021.
FULL ADDRESS | Finance minister Enoch Godongwana delivers budget speech
A bottle of spirits will be R4.83 more expensive — here's how much you'll pay for your sins (tax)
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If you enjoy a smoke or a cold beverage after your work day, you'll be paying a lot more now.
On Wednesday, during his first budget speech, finance minister Enoch Godongwana did not spare the so-called “sin” industries and increased excise duties on alcohol and tobacco products by between 4.5% and 6.5%.
Godongwana said the government will introduce a new tax on beer powders and increase the tax on sugar to R2.32 per gram, after three years of no changes.
“Government also proposes to introduce a new tax on vaping products of at least R2.90 per millilitre from January 1 2023,” the finance minister said.
The “sin tax” increases mean that from Wednesday:
The National Liquor Traders Association said it was disappointed with the increase in excise duties.
Speaking to 702, the association's convener Lucky Ntimane said Godongwana spoke to them before the budget and they know he had a tough balancing act to do.
“However, we are disappointed that we are seeing these increases that are marginally above inflation,” said Ntimane.
“What this means is that the illicit market, which is above R20bn per annum, is going to celebrate because they won't be taking any access duty this time around and people are going to move there to buy. They are the real winners in this budget.”
Ntimane said it was time for the government to do away with the term “sin tax” because it is anti-constitutional and does not bring dignity to the trade.
Last year, the SA Liquor Brand owners Association (Salba) said the four bans placed on liquor sales during the Covid-19 pandemic cost the country’s GDP an estimated R64.8bn.
This excluded the cost of recent looting in KwaZulu-Natal and Gauteng. More than R500m in liquor stock was looted during violence and destruction in the two provinces.
Salba chairperson Sibani Mngadi said the four bans on alcohol sales resulted in a total loss in retail sales revenue of R45.1bn, or equivalent to 15.8% of the sector’s projected sales for 2020 and 2021.
FULL ADDRESS | Finance minister Enoch Godongwana delivers budget speech
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