#Budget2023: Alcohol industry welcomes inflationary hike on excise duties

Finance Minister Enoch Godongwana announced during the Budget Speech that excise duties on alcohol increased in line with expected inflation of 4.9%, with the rate for sparkling wine pegged at 3.2 times that of natural unfortified wine. The Beer Association of South Africa (Basa) said the inflationary hike reflects that National Treasury has indeed recognised the increased pressures faced by businesses. It added that the beer industry (particularly the craft sector) is still trying to recover from the Covid-19 national lockdown and associated four alcohol bans, while at the same time trying to survive the devastating impact of severe load shedding. "Any increase in excise thus places enormous pressure on an industry that is a major contributor to the South African economy, with 1 in every 66 jobs in the country sustained by the sector. Furthermore, R1 for every R79 of the country's GDP is attributable to beer-related economic activity, which means the beer industry makes up ...