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South Africa’s steep alcohol taxes, exceeding targets and fueling illegal trade, are threatening a major industry and prompting calls for urgent policy reform.
South Africa’s alcohol tax policy faces urgent reform as repeated above-inflation excise hikes have strained a vital industry worth R226.3bn to GDP and supporting nearly 500,000 jobs.
Despite claims the taxes aim to reduce drinking, they now exceed 2024 targets, fueling an illicit trade that accounts for 18% of the spirits market and costs R11bn in lost revenue annually.
Immediate implementation after budget announcements disrupts business planning, while tax rates on spirits reach over 56% of retail prices.
Industry leaders and government acknowledge the need for fairer, more predictable policies to balance public health goals with economic stability.
Los altos impuestos al alcohol de Sudáfrica, que superan los objetivos y alimentan el comercio ilegal, están amenazando a una importante industria y provocando llamados a una reforma política urgente.