South African Breweries (SAB) has voiced strong opposition to a proposal to increase excise duties on standard beer by 20%, warning that the move could have unintended economic consequences.
The concerns were raised during a recent National Treasury excise policy workshop, where discussions focused on the possible restructuring of alcohol excise taxes.
SAB argues that a significant increase in beer taxes could dampen economic activity, reduce government tax revenue and encourage consumers to turn to the illicit alcohol market.
Speaking on behalf of the brewer, Fatsani Banda said consumers are already under considerable financial pressure due to rising living costs.
Banda noted that increases in electricity tariffs, water rates and recent interest rate adjustments have placed additional strain on household budgets, affecting consumers' ability to purchase legal products, including beer.
She said the current economic climate facing both consumers and producers had not been adequately considered in the proposed excise tax redesign process.
"We think the current environment affecting producers hasn't been duly considered in the shaping and nature of the increase in beer, in particular during the excise tax redesign that is going on currently with National Treasury," Banda said.
SAB maintains that any substantial tax increase should take into account the broader economic environment and the potential impact on the legal alcohol industry and consumer behaviour.