The National Liquor Traders Association has called on the government to keep taxes unchanged in the February 2022 budget, citing unaffordability issues.
The association, which represents over 39,000 liquor outlets employing more than 280,000 workers, said that it had been severely impacted by multiple alcohol sales bans imposed during the Covid-19 pandemic.
In a letter addressed to President Cyril Ramaphosa and finance minister Enoch Godogwana, the group called for:
A 0% increase in excise duty.
The end of the term ‘sin tax’. “It is our contention that in a constitutional state this term has no room to exist, and it is contrary to latter, and spirit, as espoused by Section 22 of our Constitution which reads, every citizen, has the right to choose their trade, occupation or profession freely,” the group said.
The end to rules and regulations which prevent state-owned funding and lending agencies from assisting liquor traders as they are seen to be the ‘sin’ industry. “The inability of the state to support small and black-owned businesses continues to hamper our growth efforts and prevents us from entering the manufacturing domain where we can own the means to production,” it said.
“An upcoming budget speech by the Minister of Finance, Enoch Godongwane carries with it a real risk that liquor traders will once again be punished by an uncaring government through the increase in sin tax.
“It is our view that government cannot seek to derive tax revenue from an industry it deliberately tried to destroy through unjustified and unscientific alcohol bans and restrictions,” said the association’s Lucky Ntimane.
He added that a 0% increase on excise duty payable will aid in the recovery efforts of taverners, who are the mainstay of the township economy and the largest employer in the sector accounting for over 250,000 jobs.
“We continue to call on the government to engage with liquor traders so that we can look at the basket of options necessary to supporting liquor traders, who are essentially small black-owned businesses.
“The continued ignorance of this important sector by the government only continues to strengthen the notion that President Ramaphosa and his government views liquor traders as nothing but a cow that must be milked to its death through taxes that are surely going to be the death knell of this important sector.”
Culled from Businesstech
