In February, South Africa Wine launched a vital excise tax campaign to address the proposed tax hikes that threaten the very sustainability of our industry. The National Treasury’s proposed shift to alcohol-content-based taxation would lead to an unsustainable 72% weighted average increase in excise rates, placing undue pressure on producers, job security, and the broader economy.
Our industry contributes R56 billion to the country’s GDP, supports 270,364 jobs, and plays a vital role in tourism and rural development. The proposed excise tax changes will have severe consequences: increased costs for wine producers, making it harder to compete globally, disproportionate tax burdens on South African wines, threatening business sustainability and negative economic ripple effects, particularly for small-scale farmers, cellars, and rural communities.
South Africa Wine has submitted a comprehensive response to the National Treasury, outlining the severe repercussions of these tax proposals. However, we knew that industry-wide participation would strengthen our case. We called on our members to submit responses before the 14 February 2025 deadline, urging them to highlight the impact of these changes on their businesses, employees, and communities. Many of you took action, ensuring that government officials heard firsthand the challenges these policies would create.
We sincerely thank every member who submitted their concerns to the National Treasury. Your voices have played a crucial role in amplifying the message that these excessive tax increases are unsustainable and unfairly disadvantage our industry.
We are disappointed that the Budget Speech, which was supposed to be tabled on 19 February, did not happen, as this country urgently needs policy certainty to attract investors. With the budget announcement now rescheduled for 12 March, we remain hopeful that sustainable solutions will be discussed by all parties within the Government of National Unity (GNU).
This campaign, however, is just the beginning. In the coming months, South Africa Wine will continue engaging with the relevant government structures, ensuring that the wine industry’s voice is heard at all levels. We are committed to advocating for a fair and balanced excise policy that supports industry growth while allowing the government to meet its revenue objectives.
We will keep you updated on ongoing discussions, future engagements, and further steps needed to protect our industry’s future. Your continued support and collective action remain vital in securing a sustainable and competitive environment for South African wine.
Thank you for joining us to ensure our industry thrives despite the challenges ahead.
ISSUED BY
South Africa Wine
MEDIA ENQUIRIES
Wanda Augustyn
Communications and Brand Manager: South Africa Wine
Tel: 021 276 0458
E-mail: wanda@sawine.co.za