Budget 2023
Share

Wine industry reacts to budget impact

Cape Town - The South African wine industry welcomed a concession from Government on the latest excise duty increases, saying it revealed a greater insight into the unique challenges facing this industry.

Excise hikes of 6.2% on unfortified wine, 10% on sparkling wine and 12% on brandy were announced by the Minister of Finance, Pravin Gordhan, during the annual National Budget Speech.

According to Rico Basson, managing director of VinPro – the representative organisation for close to 3 600 wine producers and cellars – the increase in excise duty on wine was the lowest in years,
which indicated that Treasury responded to an appeal by the industry.

The 12% hike in brandy will, however, increase pressure on the sales volumes of this important wine industry segment even further, of which more than 50% of the retail price is already paid to excise and VAT.

“The wine industry plays an important part in job creation, growth and the generation of foreign exchange. We therefore support the strong focus by the Minister on the elements of the National Development Plan, with specific reference to the importance of the private sector’s contribution to economic growth,” said Basson.

There is, however, some concern by die industry about the extent of illicit trade and the socioeconomic impact of abuse.

The wine industry therefore called on Government for a responsible policy framework with focused actions, and committed itself to closer collaboration in this regard.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.01
-0.5%
Rand - Pound
24.01
-0.5%
Rand - Euro
20.52
-0.3%
Rand - Aus dollar
12.35
+0.0%
Rand - Yen
0.13
-0.6%
Platinum
900.15
+0.4%
Palladium
1,000.00
-0.2%
Gold
2,209.40
+0.7%
Silver
24.58
-0.3%
Brent Crude
86.09
-0.2%
Top 40
68,189
+0.8%
All Share
74,373
+0.6%
Resource 10
57,035
+2.5%
Industrial 25
103,662
+0.4%
Financial 15
16,492
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders