Beer Association of SA warns high taxes fueling dangerous illicit alcohol trade

The Beer Association of South Africa (BASA) has issued a warning that heavy taxation on the legitimate industry is directly contributing to the growth of the illicit alcohol trade.

BASA CEO Charlene Louw cited a study by the global research firm Euromonitor, which found that illegal alcohol currently accounts for 18% of the country’s consumption. This shadow market is estimated to be costing the government an alarming R16.1 billion in lost tax revenue.

Louw further cautioned that some of these unregulated products pose a severe threat to public health.

"Some of these illicit products are deadly and are really fatal to human beings and are not meant for human consumption. And I think that’s where, again, our plea is to the government to say the more and more we push consumers towards this illicit market, we are putting people’s lives at risk."

The association is urging the government to reconsider its current tax strategy, stating that inflation-linked tax adjustments would help stabilise the formal industry, protect existing jobs, and discourage consumers from turning to the cheaper, but dangerous, illicit market.

JOIN US ON WHATSAPP

Stay ahead of the story: Join our WhatsApp channel today.

Want breaking news at your fingertips, the moment it happens? Our WhatsApp Channel is the fastest way to stay connected with the stories that matter most.

From breaking news alerts to exclusive stories, analysis and must-read features - you’ll get it all directly on your phone.

Joining is simple.

Just click Follow on our WhatsApp Channel and stay informed.