South Africa: Beer Could Soon Cost More As Government Looks At Tax Hike

The Treasury is considering a tax hike of up to 20%, which could push beer prices up.
Tavern owners warn higher prices could hurt small businesses and push drinkers to illegal alcohol.
Beer prices in South Africa could soon go up.

The National Treasury is looking at raising taxes on beer and wine. The aim is to cut down on heavy drinking.

Reports say the Treasury met with alcohol producers late last year to talk about higher alcohol taxes. Health groups support the move.

They say alcohol in South Africa is often cheaper than basic food like bread. This makes it easier for people to drink too much, especially young people. They also say higher prices usually lead to less drinking.

But beer producers and tavern owners are worried.

The Beer Association of South Africa says illegal alcohol already makes up a big part of what people drink. They warn that if beer becomes too expensive, more people will turn to illegal brews.

The industry also says the beer sector supports thousands of jobs, many of them in small taverns and informal businesses.

“These small businesses are already struggling,” the association said. They want taxes to rise slowly with inflation, instead of sudden big increases.

For many drinkers and tavern owners, the worry is simple. If taxes go up, beer will cost more, and people who are already struggling will feel it first.

By Scrolla.