South Africa Wine notes Government’s decision to adjust excise duties on wine in line with inflation for the 2026/27 financial year.
During the national budget speech, Mr Enoch Gondwana, Minister of Finance, announced excise duty increases of 3.39% on wine, brandy, and sparkling wine.
The industry has consistently advocated for a CPI-linked framework, as contained in the National Treasury’s excise policy. Maintaining inflationary adjustments supports predictability, policy certainty and long-term planning across the wine value chain.
While the sector continues to face structural pressures, including declining domestic consumption within the regulated market, rising input costs and constrained margins, a CPI-aligned increase provides a more stable foundation for business continuity and investment.
“Policy certainty is vital for a labour-intensive agricultural industry such as wine,” says Rico Basson, CEO of South Africa Wine. “Inflation-linked adjustments help balance the government’s fiscal objectives with the sustainability of rural jobs, exports and economic contribution.”
South Africa Wine is acutely aware of the social and socio-economic challenges facing the country. We recognise that alcohol-related harm due to misuse remains a serious concern. However, meaningful and lasting solutions do not lie solely in further regulatory or excise interventions. Effective law enforcement, collective societal responsibility and coordinated partnerships are important components in addressing these complex challenges. The wine industry stands ready to work alongside the government and broader society in pursuing balanced, evidence-based approaches that protect communities while sustaining economic contribution.
The resulting CPI-linked adjustment reflects constructive engagement and recognition by the National Treasury of the wine industry’s economic contribution across the entire value chain, from primary production through to the marketplace.
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MEDIA ENQUIRIES
Wanda Augustyn
Head of Brand and Communications
Tel: 021 276 0458
Email: wanda@sawine.co.za
