Vinpro
SA alcohol industry urges govt to use sound judgement on excise duties
VinPro is appealing to Treasury for no more excessive tax hikes and the SA Liquor Brand Owners Association (Salba) said that increasing excise at rates above...
Wine body Vinpro said this was mainly due to a decrease in vineyards, high disease pressure and heatwaves in certain regions.
Wine industry body Vinpro is relieved government has not imposed more stringent national restrictions that would have had a serious effect on wine cellars and wine tourism destinations.
The South African wine industry said that government’s move not to introduce more stringent COVID-19 safety measures was welcome for the sector.
The alcohol industry is fighting for its survival as it tries to ensure that no more profits and jobs are due to the government's coronavirus regulations.
One of the three points argued is that provinces, not the national government, should decide whether or not to impose liquor restrictions.
Non-profit organisation VinPro represents close to 2,600 wine producers, cellars and industry stakeholders.
The South African Liquor Brand Owners Association said that the economic recovery of the alcohol, tourism and hospitality sectors was paramount to protect employment and grow the economy to pre-COVID-19 levels.
Vinpro managing director Rico Basson called on the state to create an enabling environment that could help rebuild the sector.
Vinpro took government to court this week to contest its decision to impose nationwide liquor bans.
Vinpro is taking on authorities over the curbs, which it argues is damaging the sector.
The matter against government's restriction on alcohol sales will be heard in the Western Cape High Court from Monday until Thursday.
The application is seeking urgent interim relief for producers and wants the Western Cape premier to be given the power to adopt deviations to enable off and on consumption alcohol sales in the province.
Government instituted the latest ban on 28 December to help hospitals cope with an influx of COVID-19 cases.
Vinpro's Rico Basson estimates between 80 wineries and 350 grape producers may go out of business in the next 12 to 18 months.
Vinpro said that in addition to scores of people that had already been laid off from work as a result of COVID-19 regulations, an estimated 18,000 more jobs could be lost.
Vinpro's Rico Basson said the wine industry lost R200 million a week on exports due to the revised lockdown regulations; and that the move had huge financial repercussions on the sector.
Vinpro represents around 2,500 South African wine producers, cellars and industry stakeholders and has been at the forefront of talks with government since a lockdown was imposed from 27 March.
Wine sales in South Africa dropped by around 10 million bottles last year.