SAB warns alcohol taxes could fuel illicit trade

The alcohol industry has warned that National Treasury's proposal to raise alcohol taxes could further encourage the illicit alcohol trade.

Treasury is currently reviewing the alcohol taxation framework.

It aims to tax beer and wine based on the amount of alcohol they contain.

This is to encourage consumers to choose lower-alcohol options, and incentivise manufacturers to reformulate products.

The industry says while the review aims to support public health objectives and boost revenue collection, this move could drive consumers toward the illicit market.

It also warns of possible loss of jobs, investment and tax revenue.


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