South Africa: Alcohol industry asks for tax holiday due to ban on all liquor sales

With South Africa’s alcohol industry predicting that the current two-week ban on all liquor sales will result in R6.1 billion in lost retail sales, the sector is now lobbing the taxman and effectively the national treasury to defer at least R1.5 billion in related excise tax payments, algoafm.co.za reported on July 6.

“The latest 14-day ban of alcohol sales declared by the government has left the South African Liquor Brand Owners Association [Salba] no choice but to request that the South African Revenue Service [SARS] provide extended payment terms on the excise duties currently due,” the industry body said on Monday.

Salba represents major alcohol manufacturers, including Distell, Heineken, Diageo, Pernod Ricard, and DGB.

It has made such ‘tax holiday’ requests before when alcohol bans were in place for prior Covid-19 liquor trade and lockdown restrictions. In the past, these requests have been granted by the taxman.

The organisation says that should the government decide to extend the current alcohol sales ban beyond the initial 14 days (which expires on Sunday, July 11), then its tax deferment request needs to be applicable for the whole period until the ban is lifted.

07 July, 2021