National Treasury Defends Excise Duty Policy Amid Illicit Trade Concerns
What happened
During hearings in Parliament, National Treasury and South African Revenue Service defended their policy of maintaining inflation-linked excise duty increases on tobacco and alcohol products. Industry stakeholders warned that legal businesses are losing ground to smugglers and counterfeit operators. Treasury maintained that stronger enforcement, rather than lowering excise taxes, is the appropriate response to the growing illicit trade threat.
From sundayworld.co.za
Why it matters
The policy maintains rising tax burdens on legal manufacturers, who reported facing a tax burden of more than R27 per p for cigarettes. Stakeholders argue that these increases widen the price gap between legal and illegal cigarettes, as illicit operators do not pass on tax hikes.
From sundayworld.co.za
Who's involved
- National TreasuryNational Treasury defended the excise duty policy during parliamentary hearings.
- parliamentParliament held the hearings where the excise duty policy was debated.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- South AfricaSpeculative
South Africa might see increased industry costs for legal tobacco and alcohol manufacturers due to maintained excise duty increases.
Keep exploring
The entities involved
-
National Treasury
treasury of South Africa
-
parliament
legislative body of government
Related events
- The National Treasury tabled a bill in Parliament today.
- The MEC has accused the National Treasury of financial mismanagement by withholding necessary funds, leading to a review of the funding process.
- Treasury announced funding details for the National Student Financial Aid Scheme for Parliament consideration.
- The government presented budget material to Parliament.
- Parliament aligned expenditure with House entitlements.