SALBA requests a suspension of excise responsibility

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SALBA requests a suspension of excise duty

The alcohol industry pays Sars an average of 2.5 billion R2 per month in excise duty contributions for locally produced and imported products.

FILE: President Cyril Ramaphosa announced this week that the ban would remain in place until further notice. Image: 123rf.com

CAPE TOWN – One of the major players in the alcohol industry said the decision to ban sales left the sector no choice but to request postponement of excise duty payments until the ban was lifted.

President Cyril Ramaphosa announced this week that the ban would remain in place until further notice.

The South African Liquor Brand Owners Association (SALBA) said Wednesday it is having a profound impact on jobs and livelihoods.

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The alcohol industry pays Sars an average of 2.5 billion R2 per month in excise duty contributions for locally produced and imported products.

In July and August last year, the alcohol sector was granted a deferral of at least R 5 billion in excise tax payments when the government banned the sale of alcohol with immediate effect.

Payments resumed in October 2020 when sales were allowed again.

Sibani Mngadi of SALBA said that none of the SMEs in this sector, including taverns, restaurants and bars, have a temporary employer / employee relief program.

“Opening up alcohol sales for personal consumption will take some of the pressure off the industry’s economic burden, and that sale will have no impact on the rise in COVID-19 infections or the healthcare system.”

The alcohol consumption tax is collected at the place of production.

READ: SAB: Ban on alcohol violates the rights of South Africans

This means that alcohol companies are required to pay the tax on finished products in their warehouses that cannot be sold due to the current perpetual ban on sales.

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