South Africa’s liquor industry pays R2.5 billion a month in excise duties

  • The alcohol industry, which pays an average of R2.5 billion in excise tax every month, has been pleading with government to halt the annual increase this year, saying it would have to take “drastic action” to cut costs. 
  • Excise tax is the largest cost for manufacturers and the industry contributes R172 billion (3%) to the country’s GDP.
  • The industry says the 8% increase in alcohol duties will result in tens of thousands of job losses.

South Africa’s alcohol industry says “tens of thousands” of jobs are on the line, following Finance Minister Tito Mboweni’s announcement of an 8% excise tax increase on liquor and tobacco.

Over past few weeks, the industry – which pays an average of R2.5 billion per month in excise tax – has been pleading with government to halt the annual increase this year,

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