South African government proposes drastic excise tax increases on wine

The government of South Africa has published a policy review on the taxation of alcoholic beverages, with plans to increase excise tax in the forthcoming 2025 Budget. Containing a number of significant policy changes and amendments to the regulatory landscape, the document outlines plans to raise tax rates by up to 80%, partly to “reduce the harmful use of alcohol”. South Africa Wine, the national body representing the country’s wine grape producers and industry stakeholders, has nonetheless condemned the proposal, stating that it “poses a severe threat to the sustainability of the wine sector and its significant socio-economic contributions”. According to Rico Basson, CEO of South Africa Wine: “These proposals could devastate our industry, driving job losses and forcing producers out of the market.” “He added: “The Budget, contributes R56bn to the economy, and plays a vital role in rural development. The proposed excessive increases in excise rates will destabilise this critical ...