South Africa Wine says the government's decision to adjust excise duty on wine in line with inflation for the 2026/27 financial year provides a more stable basis for business continuity and investment.
During the national budget speech on Wednesday, Finance Minister Enoch Godongwana announced a 3.39% increase in excise duty on wine, brandy and sparkling wine. He said the price of a 750ml bottle of wine increases by 15c.
South Africa Wine said the industry has consistently advocated for a framework linked to the Consumer Price Index (CPI), as enshrined in National Treasury's excise policy.
The industry body said maintaining inflation adjustment supports predictability, policy certainty and long-term planning across the wine value chain.
While the sector continues to face structural pressures, including declining domestic consumption within the regulated market, rising input costs and tight margins, South Africa Wine said CPI-aligned growth has provided a more stable base for business continuity and investment.
“Policy certainty is vital for a labour-intensive agricultural industry like wine,” says Rico Basson, CEO of South Africa Wine. “Inflation-linked adjustments help balance the government's fiscal objectives with the sustainability of rural jobs, exports and economic contributions.”
He said the organization is fully aware of the social and socio-economic challenges facing the country and recognizes that the harm caused by alcohol due to misuse remains a serious concern.
“However, meaningful and lasting solutions do not lie in further regulatory or excise intervention alone. Effective law enforcement, collective social responsibility and coordinated partnerships are key components in addressing these complex challenges.”
The body said the wine industry stands ready to work with government and wider society in adopting a balanced, evidence-based approach that protects communities while maintaining economic contribution.
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