WINE producers will be hard hit by the latest hike in excise duties that was announced by the Minister of Finance during his budget speech last week.
Producers had to absorb substantial excise increases over the past few years despite serious financial strain, and the latest hike of 8,4% on natural wine and 10% on spirits – which includes the important brandy category – will be a vital blow to many wine producers, says Vinpro.
The wine industry noted with disappointment and concern that its critical situation and pleas were not taken into consideration, despite ongoing discussions with Government.
The hikes amount to nearly double the inflation rate, while fortified wine will increase by 7,4% and sparkling wine by 4,5%.
These increases mean that in the case of brandy, Government earns almost R400 from excise duty on each case of brandy sold in the retail market (12 x 750 ml).
