The Beer Association of South Africa (BASA) has called on Finance minister Tito Mboweni to offer the alcohol industry some tax relief ahead of his budget speech on Wednesday.<\/p>\n
BASA said that the government needs to take this step after businesses in the sector were devastated by 19 weeks of restricted trading.<\/p>\n
“To help rebuild the local beer industry, we are calling on Minister Mboweni to make a commitment not to increase excise taxes for the forthcoming financial year.<\/p>\n
“At the very least, we call on him to commit to a below-inflation increase in excise taxes on beer. We need to save jobs and livelihoods, but we cannot do so without any targeted relief from government.<\/p>\n
“We think that government\u2019s unexpected R100 billion revenue windfall is an opportunity to offer some tax relief to businesses that were shut down by government for long periods.”<\/p>\n
Bans\u00a0\u00a0<\/strong><\/p>\n BASA said that the\u00a0three blanket bans on alcohol have resulted in beer sales declining by 195 million litres since March last year.<\/p>\n “We have seen small businesses and craft breweries take the greatest of hits, with a survey conducted by our member, the Craft Brewer\u2019s Association, indicating that 87.5% of craft breweries were at risk of shutting down following the third blanket ban on alcohol sales.<\/p>\n “The majority of these businesses have no certainty of survival beyond the end of February.”<\/p>\n BASA said that the overall potential sales revenue lost from the alcohol industry amounts to R36.3 billion with a total annualised loss to GDP at R51.9 billion – equivalent to 1% of the country\u2019s GDP.<\/p>\n “More worrying still, are the 200,200 jobs which remain at risk within the alcohol industry, which is staggering for survival under present conditions,” it said.<\/p>\n No response from government<\/strong><\/p>\n BASA said it has requested urgent interventions from government to ensure the survival of the local beer industry.<\/p>\n “While we have written to the Department of Trade, Industry and Competition, the Department of Tourism and the Presidency, we have received no response to our pleas.<\/p>\n “Our small businesses and craft breweries have been left up the creek without a paddle \u2013 and the time to save jobs and businesses is quickly running out.”<\/p>\n BASA said that there is a desperate need for other payment deferrals, and financial relief, in terms of automatic liquor licence renewals if we are to have any hope of saving the businesses that remain standing.<\/p>\n “This business is one that is now sadly faced with closure as a result of lost revenues. It is a truly tragic reality to witness those who have fed others go hungry themselves.<\/p>\n “While BASA remains committed to working openly and transparently with government, we cannot continue to keep businesses alive as an industry association alone.<\/p>\n “National government needs to come to the table \u2013 and fast \u2013 if it does not want to increase South Africa\u2019s already staggeringly high unemployment rate of 30.8%.”<\/p>\n
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