File: Glasses with alcohol on the counter of a bar. Frank May/dpa Picture-Alliance via AFP
JOHANNESBURG - South Africa's alcohol industry is lobbying National Treasury to lock future excise tax increases to the inflation rate.
It says this would provide certainty for businesses while protecting government revenue.
SAB says recent above-inflation excise increases have placed growing pressure on consumers and businesses across the alcohol value chain.
The brewer argues that linking annual excise increases to inflation would protect government revenue while providing certainty for businesses to invest and create jobs.
SAB also warns that steep tax hikes risk pushing consumers toward illicit alcohol products, undermining tax collection and hurting legitimate producers.
Alcohol excise duties were increased by 3.4 percent in the 2026 Budget, down from the 6.75 percent hike implemented the previous year.