SA Drinkers Slam Treasury’s Plan To Put a Cork in Alcohol Abuse Scourge By Increasing Tax

• The National Treasury is proposing an increase in excise tax on alcohol in a bid to get SA's drinking problem under control
• The recent announcement has rained on many festive season revellers' parades, in addition to organised industry critics
• Many took to social media to blast the government, accusing the National Treasury of scapegoating the liquor industry

TSHWANE — The National Treasury intends to address South Africa's alcohol dependency problem, or so it says, amid plans to increase excise tax.

The government announced its intention to curb the existential issue of alcoholism and underage drinking by adjusting indirect duties, levies and taxes on liquor, much to the chagrin of local drinkers.

Treasury plans alcohol tax hike

In a previous Department of Trade, Industry and Corporation report, SA has the fifth highest ratio globally when analysing the volume of pure alcohol consumed by the adult drinking population in litres.

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The report found that despite a high abstention rate, the amount that drinkers drink is exorbitantly high. The country further showed risky patterns of drinking and a high alcohol-attributable burden of disease.

High patterns of drinking scores prevail in Kazakhstan, Mexico, Russia, SA and Ukraine. Expenditure on alcoholic beverages by SA households amounted to 2.7% of total spending in 2011.

Liquor makes up a more significant proportion of the shopping basket for poor and middle-class households than wealthy households.

Despite the glaring figures, the National Liquor Traders Council (NLTC) slammed the government, saying it was scapegoating the alcohol industry due to its failure to fight crime.

The entity's convenor, Lucky Ntimane, said the country should not deal with the rife alcohol abuse issue at the expense of responsible traders and consumers.

"We should find a lasting solution to [alleviate] alcohol abuse once and for all. But increasing tax and [inadvertently allowing] the [proliferation of] illicit, counterfeit alcohol is not going to solve the problem," he said.

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The Treasury has extended the public comment period for the proposed changes from Friday, 13 December 2024, to 14 February 2025.

SA slams tax increase proposal

Vocal locals added their voices to the debate, arguing critically against the tax hike. Many said it would not reduce alcohol consumption, insisting instead that the move was a way for the government to increase its revenue.

Briefly News looks at the notable reactions.

@kay_mahapa wrote:

"When you increase alcohol prices, you’re just telling us to work harder and make more money or reverse more debit orders. Treat the illness, not the symptoms."

@Colo_Tau said:

"They just out here lying. It’s just a way to get more money; it has nothing to do with reducing a drinking problem."

@LadyTee_Maimane added:

"These ones who couldn't trace billions of rands missing, what makes them think they can stop anything."

@SandileKaMsibi noted:

"Also known as 'increasing the money that flows to black markets'. People will always find a way to get drunk. This generation is gone. Instead of making alcohol look like an elixir of happiness in advertisements, put [different] adverts on TV."

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@VibemaisterS shared:

"You clearly don’t know that there are people who really don’t care what the price is, [as] long as they get drunk."

Footage of alcohol-stocked crash vehicle

In related news, Briefly News reported that footage surfaced of the moments before a horrific wreckage in which eight youngsters were killed on the route between Bridges 17 and 19 on the N2 Mandeni in northern KwaZulu-Natal.

The video, posted on the @VehicleTrackerz X page late on Friday night, 11 October 2024, more than 12 hours after the accident, showed a group of excited youth, including six high school pupils, showing off their alcohol stash.

Source: Briefly News