“Back to Homemade Beer”: Mzansi Beer Lovers Slam Proposed Alcohol Tax Hike

• BASA warned that new alcohol excise proposals could raise beer prices by 20% for most South African brands
• National Treasury’s tiered tax system charges higher rates on beer with 2.5% to 9% alcohol content, covering most local beers
• Illicit alcohol already costs South Africa R16.5 billion yearly, and BASA fears higher prices will grow that black market further

South African beer drinkers are furious after BASA warned that new Treasury tax proposals could push beer prices up by 20% nationwide. The reforms target a tiered excise system for beer and wine sales.

BASA warns of price shock for consumers

National Treasury first proposed changes to alcohol taxation laws back in November 2024. Stakeholder workshops only began a full year later, in late 2025. The plan introduces a tiered tax system, charging higher rates for drinks with more alcohol content.

Currently, beer and spirits are taxed per litre of pure alcohol. Wine, however, is taxed per litre regardless of its strength. Treasury wants drinkers to shift toward lower or zero-alcohol options through this pricing change. It also hopes brewers will reformulate products to contain less alcohol overall.

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According to a report by Daily Investor, BASA CEO Nirishi Trikamjee explained that most beers fall between 2.5% and 9% alcohol content. Under the new framework, that category would face 1.2 times the current excise rate. Since most beers sold locally sit in this bracket, prices would rise sharply for everyday drinkers. Trikamjee warned this could backfire badly on government revenue goals.

Higher prices, she said, often push consumers toward the illegal alcohol market instead. Illicit alcohol already costs the government around R16.5 billion in lost tax revenue yearly. That black market has grown over 55% faster than the legal alcohol industry in five years.

Trikamjee pointed to Covid-19 lockdowns as proof of this pattern happening before. When alcohol sales were banned, many South Africans turned to illegal suppliers instead. Those products carry no quality checks, safety standards or consumer protections whatsoever.

Treasury has previously admitted that higher excise alone will not fix alcohol harm. BASA says it will keep engaging Treasury to find a workable middle ground. Beer remains South Africa’s most popular alcoholic drink, worth over R250 billion in 2025. Nearly 71% of alcohol sales come from beer, far ahead of wine and spirits combined.

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Online, South Africans reacted with anger, joking about brewing their own beer at home. Others accused government of squeezing taxpayers further while corruption continues unchecked nationwide.

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Source: Briefly News