Liquor industry may have to cut more jobs after 8% hike on excise tax: Salba CEO
On Thursday, Finance Minister Tito Mboweni announced that there would be an 8% tax increase on alcohol during his 2021 Budget Speech.
Kurt Moore, CEO of the South African liquor Brand owners Association (Salba), says the tax increase means that more industry jobs are at risk.
Earlier this month, the liquor industry reported that it had lost R36.3 billion in revenue due to various alcohol bans which amounted to 19 weeks of no trading.
Moore says the above-inflation increase to excise tax will further cripple the alcohol industry, which has already been on its knees.
Moore says the liquor industry will have to take drastic action to cut costs and that may include more job cuts in the near future.
We're really, really disappointed with this increase.Kurt Moore, CEO - South African Liquor Brand owners Association (Salba)
Even before this 8% adjustment, were already above the targeted inflation. This just places us way over, and in our view, places some jobs at risk.Kurt Moore, CEO - South African Liquor Brand owners Association (Salba)
We are an industry that is under real pressure. We are on our knees in most cases. This is going to have an impact on jobs going forward.Kurt Moore, CEO - South African Liquor Brand owners Association (Salba)
Listen to the discussion on Early Breakfast with Africa Melane:
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