Brewers oppose proposed alcohol tax overhaul, warn of higher prices and illicit trade

SAB argued that annual excise increases should be linked to the Consumer Price Index (CPI), saying this would preserve government revenue in real terms while giving businesses and consumers greater certainty.

South Africa's beer industry is pushing back against proposed changes to the country's alcohol excise policy, warning that higher taxes could hurt consumers, threaten jobs and fuel the illicit alcohol market.

The South African Breweries (SAB) and the Beer Association of South Africa (BASA) made submissions to National Treasury during stakeholder consultations on Thursday, urging government to adopt a more predictable inflation-linked excise tax framework instead of measures that could significantly increase duties on beer.

The consultation forms part of Treasury's review of South Africa's alcohol excise policy, which seeks to determine how alcohol taxes should be structured in future.

SAB argued that annual excise increases should be linked to the Consumer Price Index (CPI), saying this would preserve government revenue in real terms while giving businesses and consumers greater certainty.