PRESS STATEMENT BY THE BEER ASSOCIATION OF SOUTH AFRICA
23 February 2022
2022 Budget Speech: Beer industry requests meeting with Minister Godongwana to discuss relief for craft breweries
The Beer Association of South Africa (BASA) notes Finance Minister Enoch Godongwana’s announcement that excise beer products will see a 5.5% increase, which is in line with inflation. While we are pleased that the local beer industry was not faced with another above inflation increase, we are disappointed that the Minister failed to address the issue of relief for our smaller craft brewers in particular.
With these breweries having received zero compensation from government to date despite the previous four alcohol bans forcing them to shut their doors for a total of 161 days (just over four months) between March 2020 and July 2021, they are still rebuilding their businesses and with no relief offered, as well as another increase in excise, their sustainability as a sector remains at risk.
BASA will therefore be writing to Minister Godongwana to request a meeting to discuss relief measures as well as a new tax policy going forward that recognises and incentivises lower alcohol products such as beer. Not only would this create more jobs, at a time when our expanded unemployment rate sits at 46%, but will also encourage people to drink in moderation by buying cheaper lower alcohol products.
As BASA, we are committed to working with National Treasury to increase the role the beer industry plays (which already employs over 450 000 people), in particular small businesses within the sector, in creating inclusive economic growth in South Africa.
The beer industry will also continue to invest in programs that support emerging farmers as well as harm reduction programs. BASA and its members are committed to working with government ensuring the industry and South Africa makes a strong recovery and thrives again.
ENDS
Note to Editors: Kindly attribute quotes to Patricia Pillay, CEO of BASA.
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Nicole Mirkin (Account Manager)
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