MEMBERS of the wine industry have expressed shock over the increased excise tax on natural wine and other products of the vine announced in the latest budget of the government.

In his budget speech last week, finance minister Trevor Manuel announced that the excise tax on natural wine would increase by 30,3%.

The industry was accustomed to an average increase of 10% or 11% in excise over the last few years.

The increase is part of a phased- in increase over the next three years to achieve a total taxation of 23% on the average retail selling price of wine.

This means an immediate increase of about 88c per bottle of table wine (R1,17 per litre). Sparkling wine tax increases by 28% and fortified wine by 16% (R2,23 per litre).

 An increase of 43% in taxation on spirits and 33% on beer is also to be phased in over the next three years. Spirits are taxed by an additional 13,5% (R1,76 per bottle).

The tax on malt beer increases by 9% and beer drinkers will pay 4,3 cents more for a 350 ml can of beer.

Roleplayers in the wine industry say the increased tax on their products will hit them hard and could impact on farm workers, as the export market for fruit and wine is already adversely affected by the strong rand.

The excise hike will now also further dampen the depressed domestic market, it is feared.

Said Sterik de Wet, cellarmaster of KWV, "We really don't deserve this. Our industry employs so many people in the Western Cape, that this is a big blow for us."

KWV is due to launch is export products on the domestic market at the end of next month.

Riaan Kruger, head of the Cape Wine and Spirits Institute, expressed his shock at the increase at a time when the Western Cape agricultural sector can ill afford it.

"In the same way in which higher prices lead to a black market in cigarettes, such increases could drive some producers of lower price wines to sell their products illegally."

"This could lead to an increase of cheap and low quality products which can affect consumers' health."

Estate agents are smiling however after concessions to property  transactoins.

The property trade welcomed the raising of the transfer duty exempt level from R140 000 to R150 000 and the abolition of stamp duties on mortgages.

"This is good news for lower and middle income earners, and hopefully will help make home ownership more attractive and affordable to first time buyers," says Dr Andrew Golding, CE of the Pam Golding Property group.

"We hope that these tax breaks together with other personal tax adjustments aimed mainly at benefiting lower and middle income earner will serve to further increase economic and social stability in South Africa. 

"It is also hoped that the foreign exchange amnesty, which ends on February 29, may result in additional capital being re-injected into the local economy.

"However it is regretted that the Minister did not take the opportunity to further relax the existing exchange control restrictions.

"It is also regretted that the anticipated reform of the tax treatment of retirement savings anticipated for the 2004 Budget is not on the cards for this year, and is still under review.

"While last year Finance Minister Trevor Manuel did reduce tax on retirement funds to 18 percent from 25 percent, we believe there is scope for a further reduction as it is important that we encourage a culture of saving among all South Africans and reward those who make provision for their retirement. 

"One must also bear in mind that pensioners are among those who have been hard hit by the lower interest rates, and they are also faced with a general shortage of retirement accommodation in this country," says Dr Golding.

The budget brought R4 billion tax relief for South Africans, of which 60 percent is to go to workers earning less than R150 000 a year.

But consumers will have to cough up an extra 15 cents per litre onpetrol, which will have an inflationary and far reaching effect, especially on those who are faced with high daily transport costs to and from places of work.

The Drakenstein Municipality together with the Environmental Evaluation Unit and Amathemba Environmental Management Consulting will be holding public meetings in March to discuss the state of the environment reports planned for the region.

The meetings start at 19:00 at Ronwe Primary (8 March), Paarl banqueting hall (9 March), Huguenot community hall (11 March), Wellington town hall (16 March), Gouda sportsgrounds (18 March), Mbekweni community hall (23 March) and Saron VG church hall (25 March 19:30).

To register as an Interested and Affected Party (I&AP) contact Shona Young at tel 650-2866, fax 650-3791 or young@science.uct.ac.za. For more information on State of the Environment reports, see

www.eeu.uct.ac.za.

Economic development

* The Drakenstein Town Council intends to undertake the second and third phases of a Local Economic Development Study - 'Analysing the local economy' and 'Formulating the strategy'.

This plan is a core component of the Municipal's Integrated Development Plan (IDP) for Drakenstein.

Specialists in the field who are interested in undertaking this study, may submit proposals together with cost estimates for the execution of this project.

An information project can be obtained from Ashley Roelf at the Civic Centre (807-4835).

Proposals marked "Economic Study - Phase 2 & 3: Drakenstein Municipality" should be placed in the tender box before 10:00 on Thursday 11 March.

All proposals will be considered. Council, however does not bind itself to accept the lowest cost estimate and reserves the right to turn down all or parts of any proposal.

Council will select the successful consultant and the decision will be final.

THE Boland Forum for Funeral Directors was established in Paarl recently as a mouthpiece for local funeral directors.

The forum's aim is to regulate funeral costs and to avoid exploitations by unathorised or unofficial undertakers.

The forum will also help one to render world class services and will negotiate with the Municipalities regarding graveyards and their conditions.

Seven funeral directors are already affiliated and they invite all others to join.

For enquiries about the new forum, contact Phillip Andrews (862-3626) or Fikile P Maxam (082-388-5664).