Changes to tax on alcoholic drinks are coming! How to comment…
National Treasury is reviewing the taxation of alcoholic beverages.
FILE: Alcholic beverages Picture: 123rf.com
Africa Melane speaks with Professor Corné van Walbeek, Director of the Research Unit on the Economics of Excisable Products at the University of Cape Town.
Listen below.
National Treasury’s latest policy review on the taxation of alcoholic beverages is available for public comment.
This will inform budget changes in 2025.
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They are proposing moving to a tax regime based on alcohol content.
The current guidelines for the tax incidence for wine, beer, and spirits are set at 11%, 23% and 36%, respectively.
Van Walbeek says they may also split wine taxation into three categories based on alcohol content.
The categories will be as follows:
Weak alcohol content – less than 4.5%
Middle alcohol content – between 4.5% and 9%
Normal alcohol content – above 9%
Some producers of low-alcohol wine feel disadvantaged.
“At this point in time, wine is being taxed at the same rate irrespective of alcohol content and that has caused some unhappiness.”
- Professor Corné van Walbeek
He adds that this could lead to significantly greater tax revenue, especially from wine.
Written comments can be forwarded to 2024Alcoholreview@treasury.gov.za by the close of business on 13 December 2024.
Scroll up to the audio player to listen to the interview.