Treasury proposes minimum alcohol price
The Treasury has proposed a minimum price for alcoholic beverages and changes to excise tax frameworks.
The new rules suggest excise duty rate adjustments within expected inflation and specific duty bands for wine and beer based on alcohol content.
According to the Treasury, these proposals aim to curb alcohol consumption and related harm, aligning with World Health Organisation recommendations.
“The 2018 WHO report indicated that about 59 per cent of South African alcohol consumers over 15 years of age were reported to have engaged in heavy episodic drinking. Considering that the daily average consumption is reported at 64.6 grams of pure alcohol, it means the problem of heavy episodic drinking is significant,” Treasury said in a statement.
It added: “Affordability of alcoholic beverages, determined by relative prices of alcoholic beverages, rates of inflation, and consumer income, is considered to be one of the most important factors affecting
alcohol consumption.
“Alcohol taxes and pricing policies are an effective tool to target the affordability of alcohol and internalise the external costs of alcohol abuse by adjusting alcoholic beverage prices. Excise tax increases should aim to reduce the affordability of alcoholic beverages.”
Public comments are invited by 13 December.
