SA’s Alcohol and Cigarette Makers to Get R6-bn Tax Break

"This is expected to provide short term assistance of around R6 billion."

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Alcohol
Alcohol. Photo by Helena Lopes on Unsplash

South Africa’s alcohol and cigarette makers are set to get R6billion in tax breaks.

It is part of South Africa’s government measures to help businesses focus on staying afloat and paying their employees and suppliers.

The South African National Treasury on Thursday announced that the measures are expected to provide around R70 billion in support, either through reductions in taxes otherwise payable or through deferrals of tax payments to tax compliant businesses.

The interventions include a tax holiday for the makers of alcohol and cigarettes.

“This is expected to provide short term assistance of around R6 billion.”
The national treasury added that there is a critical need for government intervention to assist with job retention and support businesses that may be experiencing significant distress.

Also read: Coronavirus: South Africa’s Alcohol Sale Ban to Remain in Force

The Presidency says it has declined the request of the Gauteng Liquor Forum for its members to sell alcohol during the declared National State of Disaster and lockdown.“The restriction on the sale of liquor will remain,” said the Presidency on Friday.

The decision was communicated to the forum’s attorneys on Friday via the offices of the State Attorney.

“The President [Cyril Ramaphosa] and government as a whole remain committed to financially supporting businesses in distress during this period. The President has carefully considered the representations made by the Gauteng Liquor Forum.

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