The National Liquor Traders Council (NLTC) has criticized the government for what it calls the unfair targeting of the alcohol industry to compensate for its failure to address crime in South Africa.
The backlash follows National Treasury's announcement of its intention to raise excise taxes on alcoholic beverages. The public comment period for the proposed changes to alcohol taxation policies has been extended from December 13, 2023, to February 14, 2024.
NLTC Convenor Lucky Ntimane acknowledged the need to address alcohol abuse in South Africa but argued that responsible traders and consumers should not bear the brunt of these measures. "We agree that alcohol abuse is an issue in the country and needs to be addressed. However, this should not come at the expense of responsible liquor traders and consumers, merely to increase government revenue," he said.
Ntimane also expressed concerns about the potential unintended consequences of the tax hike, including the proliferation of illicit and counterfeit alcohol. "Increasing taxes while allowing the illicit alcohol trade to thrive is not a viable solution," he stated.
The NLTC has called for a sustainable, long-term approach to tackling alcohol abuse without punishing legitimate stakeholders in the industry. "Let’s work together to find lasting solutions that address alcohol abuse comprehensively," Ntimane added.
The proposed tax changes have sparked a heated debate about balancing public health priorities, economic impacts, and the fight against illicit trade.