'Alcohol industry's tax contribution to fiscus being affected by illicit trade'
The Drinks Federation of SA has released a report titled 'The Contribution of the Alcohol Beverage Industry to the Economy of South Africa'.
Stepehn Grootes interviews the DF-SA's head of research, Dr. Shamal Ramesar.
The alcohol industry plays a significant role in advancing South Africa's economic development through tax contributions and support for livelihoods, reports the Drinks Federation of South Africa (DF-SA).
The Federation has released its research study for 2022, which finds that the booze industry contributed R226.3 billion (3.6%), to our GDP that year.
"Legal alcohol beverage manufacturers make a valuable contribution to the South African economy through their production of beer, wine, spirits, and ready-to-drink alcoholic beverages."
"Wineries, breweries, cideries and distilleries also support the livelihoods of thousands of households and contribute strongly to government tax revenue."
Drinks Federation of South Africa
The DF-SA also says that through the entire process of getting alcoholic beverages to consumers, the industry stimulates economic activity throughout its value chain.
Including all the economic multiplier effects, the report says, they estimate that the alcohol beverage industry's sustained economy-wide output is valued at just under R483 billion.
Stephen Grootes discusses the report, and the COST to the economy of the same industry, with DF-SA's head of research, Dr. Shamal Ramesar.
"When you look at the tax revenue which is quite important, that's almost R97 billion which is about 6.7% of the government's total tax revenue."
"The industry itself supports just short of 500 000 jobs in SA, but also that impacts about 1.2 million livelihoods."
"What is disturbing is there's also a rise in the illicit alcohol trade which really is putting a damper on the tax revenue generated, and then has public health concerns as well."
Dr Shamal Ramesar, Director: Research - Drinks Federation of SA
Acknowledging that there is alsa a cost to the country, Dr Ramesar cites more figures to show that the alcohol industry is a net positive contributor to the economy.
"Our study done just post-COVID looked at how much the industry generates versus the costs in terms of accidents and harm... and it is actually a net positive contributor to the economy, and that's in excess of R60 billion in terms of a positive contribution."
"The industry itself is the first one to acknowledge that the product if it is abused does cause harm... and therefore we spend a huge amount in terms of harm reduction programmes, and CSI initiatives as well."
Dr Shamal Ramesar, Director: Research - Drinks Federation of SA
To hear more detail, listen to the interview audio at the top of the article