Govt’s strategy to eliminate illicit alcohol sector concern: SALBA

The South African Liquor Brand Association (SALBA) says it remains concerned that government hasn’t yet come up with a meaningful strategy to eliminate the illicit alcohol sector.

The National Treasury released a policy review document on the taxation of alcoholic beverages earlier this week.

The policy review seeks to raise excise duties in line with inflation, taxing according to the alcohol content, so that they’re not too cheap to purchase.

The association says a significant proportion of consumers continue to turn to cheaper untaxed alcoholic drinks, which can ultimately endanger the sustainability of those businesses that pay tax.

Kurt Moore the CEO of SALBA explains: “The document from Treasury does acknowledge some work needs to be done, but it’s scant on detail about what needs to be done to stem the tight of illicit trade. The study from 2021 identifies three underlying causes for growth of illicit growth. It talks about the poor economic conditions within the country – consumers are hard pressed they are looking for cheaper alternatives we also have weak enforcement of our regulation and also taxation strategy.”