Cape Town - Despite the price of South Africans’ next beer and glass of wine increasing which may cause despair among drinkers, the Southern African Alcohol Policy Alliance in SA (SAAPA SA) believes it should receive a higher increase.
South Africa’s Finance Minister Enoch Godongwana announced on Wednesday during the annual budget speech, excise duties on alcohol and tobacco will be increased between 4.5 and 6.5 percent for 2022/2023.
- A bottle of 750ml of wine will increase by 17c
- 340ml can of beer or cider by 11c
- Bottle of sparkling wine by 76c
- A bottle of spirits by R4.83
- Cigarette prices will increase by R1.03
“The government didn’t give in to pressure from the alcohol industry which was calling for a zero increase or at least one below the inflation rate,” SAAPA SA said in a statement on Wednesday.
“Instead, the minister announced increases on alcohol and tobacco of between 4.5% and 6.5%. Given that the inflation rate for 2021 was 4.41%, this is at least good news,” it added.
The new increase is lower than last year’s 8%.
However, SAAPA SA believes more should be done to promote the health of South Africans.
“Alcohol products across the board should be taxed on a per litre of absolute alcohol basis, as is already the case with beer and spirits,” SAAPA SA said.
“A particular problem is the tax on cider and flavoured alcohol beverages (FABs). These attract a flat rate regardless of alcohol content, the rate being the same as that of beer with a 5% alcohol content. But the alcohol content of some of these products is higher than 5%, meaning that they are being taxed at a lower rate than beer.”
SAAPA SA adds the entry-level drinks for young people and women (FAB) should not be so affordable.
The collaboration of civil society organisations further believes the excise tax target level for different products should be revisited.
“It is too low for wine, for example, which is the drink of choice among the poor in the Western Cape”.
“The target for beer also needs to be reconsidered, given that it is by far the most consumed alcohol in the country (around 60% of all alcohol) and rated by two global studies in the past few years as close on the cheapest beer in the world. The increase announced today is not going to change that,” SAAPA SA adds.
IOL