The Beer Association of South Africa (BASA) made its submission to the National Treasury and the South African Revenue Service (SARS) on the 2022 Draft Rates Bill and the 2022 Draft Taxation Laws Amendment Bill, on Monday, 29 August 2022.
The submission was made on behalf of its members, the Craft Breweries Association of South Africa, HEINEKEN South Africa and South African Breweries and is the first of a number of planned engagements and submissions in the lead up to next year’s Budget speech when the excise duties for the 2023/2024 financial year will be announced.
It highlights the significant economic impact made by the beer industry on the whole South Africa economy. The industry sustains 249 000 jobs, or 1 in every 66 jobs nationwide. The sector also contributed R 71 billion in gross value added (‘GVA’) to South Africa’s Gross Domestic Product (‘GDP’) in 2020, or R1 for every R79 of the country’s GDP is attributable to beer-related economic activity. This means the beer industry makes up roughly 1.3% of the country’s GDP.
In order to promote consistency within the current excise regime governing the alcohol industry while also differentiating between products, BASA’s submission has put forward two proposals, the application of a LAA/ABV Excise Duty System for all Excisable Alcohol Products; and excise Duty payment terms of 30/60 days to be uniformly applied for all Excisable Alcohol Products, meaning that all product, no matter their shelf life, paying 50% duties within 30 days and 50% within 60 days.