Spirits excise tax to rise by 10% in South Africa

Spirits excise tax to rise by 10% in South Africa

South Africa's Government has hiked excise duty on spirits, despite falling sales for several producers in the country.

Excise tax on sparkling wine and spirits will rise by 4.5% and 10% respectively, the Government said in its annual Budget statement yesterday (23 February). The move comes at a time when spirits, and particularly brandy, face severe pressure.

The minister of finance, Pravin Gordhan, announced rises of ZAR0.064 per 330ml can of beer, ZAR0.13 per 750ml bottle of natural wine and ZAR2.65 (US$0.37) per 750ml bottle of spirits.

Local drinks industry body SAWIS announced yesterday that domestic brandy sales dropped by 7% in 2010. The Government earns almost ZAR400 from each 12X750ml case of brandy. Most spirit segments, with the exception of white spirits and RTDs, showed a downward trend last year.

Wine farmer body VinPro also criticised the tax rise.