South Africa Wine condemns unfair excise tax decision

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South Africa Wine condemns unfair excise tax decision

_{//business-finance.news-articles.net/content/202 .. ca-wine-condemns-unfair-excise-tax-decision.html}
^{Published in Business and Finance on Wednesday, March 12th 2025 at 13:41 GMT by IOL}

Finance Minister Enoch Godongwana said in the 2025 Budget that government will impose more taxation on tobacco and alcohol products in the coming year.

The South African wine industry has expressed strong opposition to the government's decision to increase excise taxes on wine by 7.17%, which they argue is unfair and not aligned with inflation rates. This tax hike, effective from February 22, 2023, was announced by Finance Minister Enoch Godongwana during the 2023 Budget Speech. The industry, represented by bodies like Vinpro and the South African Liquor Brand Owners Association (SALBA), contends that this increase will negatively impact the sector, which is already facing numerous challenges including load shedding, rising production costs, and logistical issues. They highlight that the tax increase is significantly higher than the inflation rate, potentially leading to reduced competitiveness in both domestic and international markets, and could result in job losses and decreased economic contribution from the wine industry. The industry is calling for a more balanced approach to taxation that considers the sector's economic and social contributions.

Read the Full IOL Article at:
[ https://www.msn.com/en-za/money/economy/south-africa-wine-condemns-unfair-excise-tax-decision/ar-AA1AMaNS ]

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