Proposed new alcohol taxes would threaten jobs, boost illicit industry, warns SAB - EWN

South Africa's beer industry is pushing back against a proposed overhaul of alcohol excise taxes by National Treasury.

As consultations continue with industry players, civil society groups and other stakeholders, the South African Breweries (SAB) have been advocating for what they call a more predictable, inflation-linked excise framework.

The brewing giant says the focus must extend beyond tax increases to consider their impact on consumers, the sustainability of the legal market, and the continued growth of illicit alcohol.

"This is increasingly urgent, with Euromonitor estimating that illicit alcohol cost the fiscus R16.5 billion in lost VAT and excise revenue in 2024, while illicit volumes have increased by 55% since 2017."

Motheo Khoaripe (in for Stephen Grootes) interviews Fatsani Banda, SAB’s senior manager for Excise and Public Policy.