Proposed beer excise changes could raise tax on most beers by 20%, industry warns

The Beer Association of South Africa has warned that proposed changes to alcohol excise policy could increase taxes on most beers by 20% while driving more consumers towards illicit alcohol.

The Beer Association of South Africa (BASA) has warned that proposed changes to the country's alcohol excise policy could increase taxes on most beers by 20%, raising concerns that higher prices may push more consumers towards the illicit alcohol market rather than reducing harmful drinking.

The industry body made its submission to National Treasury as part of the government's review of alcohol excise policy, arguing that while reducing alcohol related harm remains a shared objective, the proposed tax structure could have unintended economic and social consequences.

Under the proposed framework, beer with an alcohol content of between 2.5% and 9% would be taxed at 1.2 times the current excise rate.

BASA said this would affect the overwhelming majority of beers sold in South Africa.