AGRICULTURAL NEWS - Members of the South African wine and brandy industry have expressed disappointment about the announcement made by Minister of Finance, Malusi Gigaba, in his first budget address that there will be an 8,5% increase in excise duties on wine, sparkling wine and brandy, and an 6% increase on fortified wines.
According to VinPro MD, Rico Basson, the above-inflation excise tax increase was extremely disappointing.
South Africa’s grape producers had been under financial pressure for some time due to the prevailing drought and other economic challenges.
“Production costs have doubled in the past decade and costs are expected to rise 9% in 2018, along with a 17% increase in the minimum wage, which takes effect on 1 May,” Basson said.
