WATCH: Liquor industry prepares for post-lockdown sales
Many countries around the world are grappling with the economic devastation of the coronavirus pandemic. While various countries are looking at ways of strategically reopening their economies through gradual reintegration of selected sectors, economic recovery will take months.
In the weeks since South Africa entered locked down, sin tax and the suspension of liquor and cigarette sales have come under the spotlight. Liquor and cigarette companies have sought legal action against President Cyril Ramaphosa and Minister Nkosazana Dlamini-Zuma, respectively, each citing massive loss of revenue as well as each outlining their value to the economy as their premise.
How much have the banned substances cost the economy?
According to Finance Minster Tito Mboweni, South Africa has lost upward of R1.5 billion in the last few weeks due to the prohibiting of cigarette and liquor sales, a decision he says he was against.
While stock that was already completed and packaged can be stored for sale post lockdown, breweries had to phase out their production process; this they say, to avoid dumping of alcohol in its various production phases as well as in its vast quantities.
Illegal means to acquire banned substances
Concern of illicit trade of these banned substances have been aired by both government and citizens, with many turning to their social media pages to voice how banning the legal sale of cigarettes has boosted the illegal trade thereof. South Africans have also seen liquor stores across the country looted as citizens took advantage of the absence of store owners and employees.
Post lockdown outlook
South Africans can look forward to enjoying these banned substances once the government upgrades the national status according to the lockdown levels President Cyril Ramaphosa announced on 24 April. These are in part based on the infection rates that the country has been able to avoid growing exponentially. Liquor companies understand that it will not be ‘business as usual’ once lockdown restrictions are lifted as stipulated by the lockdown levels and regulations. For now, the focus is on strategising preparations for when the restrictions are lifted.
