Beer Association pleads for tax relief from Mboweni
The Beer Association of South Africa (Basa) has pleaded with Finance Minister Tito Mboweni to offer some tax relief to the sector when tabling his budget on Wednesday.
The sector is one of the hardest hit by the Covid-19 pandemic, with the bans on the sale of alcohol leaving many in the industry facing financial ruin.
Basa believes some form of tax relief will assist traders to sustain jobs.
“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,” says CEO Patricia Pillay.
“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 the government.”
Pillay says small brewers were hardest hit by trading restrictions.
“We believe this is the least that government can do to help our members, especially small craft brewers, whose businesses have been devastated by 19 weeks of restricted trading.”
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The association is also pleading with government to assist traders with funding to allow them to renew their liquor licenses.
"Basa would like to reiterate 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."
