Through the provincial Special Adjustment Budget, it has been revealed that the alcohol ban is on course to cost R1-billion in losses for the wine industry, as well as the potential for 18 000 jobs on the line. President Ramaphosa’s recent announcement on 12 July 2020 once again causes catastrophic implications for the wine industry in the Western Cape.
MPP Andricus van der Westhuizen says: “Thousands of jobs stand to be lost due to the closing of businesses and the laying-off of workers due to the immense pressure of the ban. The industry helps support 35 000 township-based businesses which not only help keep family and individuals’ livelihoods going but also the economy of these communities.”
The flip-flopping of regulations has severely hit the provincial economy. Wine producers will not be able to pay SARS excise duties of over R5-billion for July and August. This loss of tax income creates a heavy burden on all taxpayers who are already significantly stretched. The wine industry will have to ask for a deferment on excise duty payments as they cannot afford the resulting fees.
MPP van der Westhuizen comments: “Wine producers have supported the fight against Covid-19 but have not received the same assistance in return. Producers have utilised their own assets to produce sanitisation products such as hand sanitisers.
I call on National Government to embrace and create a nuanced, risk-adjusted approach that factors in both health and economic risks. Engagement with the wine industry should be of utmost importance in order to preserve an environment in which the safety of residents remains first and foremost, but one in which the industry can safely operate.”
The DA in the Western Cape believes the continuous ban of the wine industry and sale thereof fuels criminal syndicates, results in job losses, and will do more harm than good in the long-run. We call on the Presidency to revisit this short sighted decision and engage the industry to provide more innovative, targeted solutions.
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