SAB economist Fatsani Benda told a forum to discuss the state of the beer economy that applying an above-inflation increase in excise duty would hurt the industry and, ultimately, not benefit the government either.
SAB has been engaging with both the treasury and parliament’s joint standing committee on finance since August last year to amend tax regulations. Both SAB and Basa want the 2014 excise duty regime to be reviewed and adjusted in line with inflation, while the National Liquor Traders Association has suggested a 0% excise rate.
Basa chief executive officer Patricia Pillay noted that the sale of alcohol had been banned in South Africa for 161 days in total because Covid-19 lockdown regulations first put in place in March 2020. During these episodes, small-scale craft beer businesses that could not sell their products were often forced to dump the beverages.
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How does SAB suggest the gvt recoup the cost of alcohol-related harm if not through those excise taxes?
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