South Africa Wine says government’s decision to adjust excise duties on wine in line with inflation for the 2026/27 financial year provides a more stable foundation for business continuity and investment.
During the national budget speech on Wednesday, finance minister Enoch Godongwana announced excise duty increases of 3.39% on wine, brandy and sparkling wine. He said a 750ml bottle of wine goes up by 15c.
South Africa Wine said the industry had consistently advocated for a Consumer Price Index (CPI)-linked framework, as contained in the National Treasury’s excise policy.
The industry body said maintaining inflationary adjustments supported predictability, policy certainty and long-term planning across the wine value chain.
While the sector continues to face structural pressures, including declining domestic consumption within the regulated market, rising input costs and constrained margins, South Africa Wine said a CPI-aligned increase provided a more stable foundation for business continuity and investment.
“Policy certainty is vital for a labour-intensive agricultural industry such as wine,” says Rico Basson, CEO of South Africa Wine. “Inflation-linked adjustments help balance the government’s fiscal objectives with the sustainability of rural jobs, exports and economic contribution.”
He said the body was acutely aware of the social and socio-economic challenges facing the country and recognised that alcohol-related harm due to misuse remained a serious concern.
“However, meaningful and lasting solutions do not lie solely in further regulatory or excise interventions. Effective law enforcement, collective societal responsibility and co-ordinated partnerships are important components in addressing these complex challenges.”
The body said the wine industry stands ready to work alongside the government and broader society in pursuing balanced, evidence-based approaches that protect communities while sustaining economic contribution.
TimesLIVE
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