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Alcohol industry welcomes excise tax on liquor

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The National Treasury has granted a request by the South African Alcohol Industry for a deferment of excise tax on liquor.

Treasury proposed introducing a 90-day deferral on excise taxes to be made in August and September.

Last month, the sector applied for the deferment of R5.1 billion in excise tax, owed to SARS, until the ban on liquor sales is lifted.

SA Alcohol Industry spokesperson Sibani Mngadi says they are also negotiating for the ban to be lifted.

Mngadi says, “It is a big relief. The cost of excise tax is a significant part of the cost of doing business and we appreciate the positive response we have received from the Treasury. It will go a long way in minimizing the risk that we currently have about employment and honouring our obligations to suppliers. Certainly, the situation is very dire. We do need to look at how we revive the industry. We are negotiating with the government and put forward a couple of proposals on how we can open safely and try and minimise the concerns around alcohol abuse.

SALBA’s concerns over prohibition of sale of alcohol: Sibani Mngadi

Meanwhile, the alcohol industry has welcomed a call by the South African Medical Research Council (SAMRC) for the Government to start preparing for the lifting of the ban on the formal sale of alcohol.

The decision recognises that there was no immediate severe pressure on hospital beds set aside for the treatment of COVID-19 patients.

The call was made by SAMRC President Dr Glenda Gray and Professor Charles Parry, Director of Alcohol, Tobacco and other Drugs Research Unit of the SAMRC during an interview in July 2020.

Alcohol industry welcomes a call by SA Medical Research Council to review alcohol ban:

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