(3 minutes read)
· Figures released by the alcohol industry in South Africa showed that there was a cumulative loss of R36.3 billion in the revenue value chain in the informal and formal economy as a result of the three alcohol bans, leading to 200,200 jobs remain at risk
· Liquor industry maintained that the three alcohol bans in 2020, including the five-week ban between 29 December 2020 to 2 February 2021, resulted in damaging financial implications
· It is not alone the indsutry and workers, government itself was experiencing considerable losses by way of loss of taxes
Figures released by the alcohol industry in South Africa showed that there was a cumulative loss of R36.3 billion in the revenue value chain in the informal and formal economy as a result of the three alcohol bans, leading to 200,200 jobs remaining at risk.
Releasing these figures jointly by the South African Liquor Brand owners Association (SALBA), the Beer Association of South Africa (BASA), Vinpro and the National Liquor Traders Council (NLTC.), the liquor industry maintained that the three alcohol bans in 2020, including the five-week ban between 29 December 2020 to 2 February 2021, resulted in damaging financial implications. It is not only the industry and workers, the government itself was experiencing considerable losses by way of loss of taxes.
The tax revenue loss (excluding excise) to the fiscal year from the value chain arising from the bans amounted to R29.3 billion (equivalent to 2.3% of tax revenue), and direct excise tax revenue lost across the nation was R8.7 billion (equivalent to 21.2% of excise revenue). The country’s GDP loss was approximately R51.9 billion, about 1.0% of the total GDP measured at market prices due to the three bans.
