National Treasury is consulting on a different tax regime for alcohol taxes.
South African Breweries (SAB) has called on National Treasury to permanently link annual alcohol excise tax increases to inflation, saying a predictable framework would provide certainty for businesses, protect investment and support jobs across the beer value chain.
The brewer's submission forms part of National Treasury's consultation on South Africa's future alcohol excise policy framework, which will determine how alcohol taxes are calculated in the years ahead.
National Treasury's discussion document proposes moving away from annual excise adjustments towards a rules-based framework. 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.
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.
