Treasury on excise
· 1 min read
The Wine & Spirit Excise Forum had their annual meeting with representatives from Treasury and key issues discussed were the outlook of macro drivers of alcohol consumption in SA, an overview of the SA wine industry, illicit trade indicators and challenges, tax incidences for the different categories, the status with regards to the Liquor Tax Policy and sugar tax.
The excise status on to the respective liquor categories are as follows:
Spirits: The excise incidence is currently on par with the set target rate of 36% as percentage of RSP. This implies that spirits can expect an inflationary increase in the 2017 National Budget.
Unfortified wine: The excise incidence is still below the set target rate of 11% as percentage of RSP – This implies an above inflation increase required in the 2017 National Budget to reach the target.
The wine industry requested Treasury for a phased approach to the reaching of the set target of 11% given the sensitive phase that the industry currently finds itself in.
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