Liquor Industry: Fiscus Loses R38 Billion from Sales Ban Amid Pandemic

Liquor Industry: Fiscus Loses R38 Billion from Sales Ban Amid Pandemic

- Mzansi lost R38 billion during the liquor sales bans that have been imposed intermittantly since the country went into lockdown in 2020

- The liquor industry revealed that the tax revenue loss for the state was R29.3 billion

- Ramaphosa expressed that the booze bans were aimed at reducing alcohol-related trauma cases

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The Mzansi fiscus lost R38 billion from the recent sales ban due to the Covid-19 lockdown. The country's liquor industry has revealed that it lost just over R36 billion in sales revenue because of the three bans imposed by President Cyril Ramaphosa's government.

Ramaphosa explained that the booze bans were aimed at reducing alcohol-related trauma cases in hospitals and to free up space for Covid-19 patients during a surge of infections.

The liquor industry further shared that direct excise tax lost during the bans was R8. 7 billion while the tax revenue loss for the state amounted to R29.3 billion, according to the industry’s economic impact assessment report.

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BusinessLIVE reports that the report was prepared by FTI Consulting on behalf of the industry. The R140 billion liquor industry is responsible for 1 million jobs.

Briefly.co.za reported that Ramaphosa lifted the ban earlier in February. The president relaxed Covid-19 lockdown regulations as a result of the declining infection rate. He addressed the nation on Monday, 1 February.

While Mzansi is still on Level 3, the curfew was adjusted to the hours between 11:00 pm and 4:00 am.

"The sale of alcohol by licensed premises for on-site consumption – such as restaurants and taverns – will be permitted throughout the week from 10am to 10pm."

Ramaphosa called on South Africans to drink responsibly and not force the government to reinstate the lockdown restrictions.

Liquor Industry: Fiscus Loses R38 Billion from Sales Ban Amid Pandemic

President Cyril Ramaphosa lifted the booze ban on 1 February. Image: @cyrilramaphosa
Source: Instagram

In other news, Briefly.co.za reported that Minister Nkosazana Dlamini-Zuma continues to stand her ground about the liquor ban which has been ailing the South African liquor industry since it was first introduced in 2020 after the country went into lockdown.

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While the ban has currently lifted, Dlamini-Zuma headed to the Western Cape High Court to get an affidavit after the SAB accused the presidency of breaching the constitutional rights of South Africans and liquor companies when they banned the sale of alcohol.

According to Dlamini-Zuma, the constitutional rights of South African citizens are of utmost importance to the government, which is why another ban on the sale of alcohol is "not inconceivable" depending on the circumstances in the country at the time.

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Source: Briefly.co.za

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