JOHANNESBURG - South African Breweries is pushing back against a proposal to hike excise duties on standard beer by 20 percent.
This emerged during a recent National Treasury excise policy workshop.
SAB says the increase could backfire, hurting economic activity, undermining tax revenue, and will drive consumers towards the illicit alcohol market.
Fatsani Banda from South African Breweries said consumers are facing hikes on electricity, water rates, and just recently, interest rates that will affect their ability and purchasing power to stay, purchasing legal products, in particular legal beer.
"We think the current environment affecting producers hasn't been duly considered in the shaping and nature of the increase in beer, in particular during the excise tax redesign that is going on currently with National Treasury," she said.