Alcohol tax hike sparks tension between Treasury, industry and health activists

A brewing showdown is unfolding as National Treasury weighs a possible increase in alcohol taxes. While excise duties are usually adjusted in line with inflation, any hike above that could push up the price of beer, wine and spirits and ignite fierce opposition from the alcohol industry. Producers warn higher taxes could hurt small businesses already battling rising costs and weak consumer demand. On the other side, public health advocates say tougher taxes are long overdue, pointing to South Africa’s high rates of alcohol-related violence, road deaths and health emergencies. Treasury has yet to confirm how big or how soon the increase could be. Phemelo speaks to Southern African Alcohol Policy Alliance campaign director Nomcebo Dlamini.