JOHANNESBURG - The beer industry is frothing over Treasury’s proposed overhaul of alcohol excise taxes.
It warns the changes could threaten jobs and fuel the illicit alcohol trade.
SA Breweries said government must look beyond tax increases and consider the impact on consumers and the legal market.
SAB’s Fatsani Banda said there needs to be greater tax certainty, with excise taxes coming in line with inflation.
“We are concerned about some of the proposals that National Treasury has put on the table. In particular, what has been proposed is a 20% increase in the rate of standard beer, and that would essentially increase the price gap that already exists between illicit alcohol and legal alcohol.
“We're also concerned by the proposal around tax certainty, which encourages an up to 10% increase in excise taxes every single year in a macroeconomic environment where consumers are cash strapped and are still facing growing concerns around inflation.
“So we do think the proposals in the current consultation process need to be reviewed in light of a multiplicity of factors, which SAB thinks needs to be due consideration throughout the development of this new excise policy framework."