SANLTC accused the National Treasury of unfairly targeting the alcohol industry to address the country’s crime issues.  

The proposed changes, announced by the National Treasury, aim to curb alcohol abuse. Public input on the policy, initially set to close on December 13, has been extended to February 14, 2025.  

Speaking to Thami Ngubeni, SANLTC National Convener Lucky Ntimane said the Treasury’s approach oversteps its constitutional responsibilities. "We believe that the National Treasury misdirected itself in terms of its mandate. The stated aim of reducing alcohol abuse is not aligned with the role of Treasury, which typically adjusts excise taxes for revenue purposes rather than public health," he said.  

Ntimane suggested that the issue of alcohol abuse should involve broader collaboration with relevant stakeholders, such as the Departments of Social Development and Health. “We fully support addressing alcohol abuse, but the current approach lacks scientific grounding and common sense,” he added.  

Concerns Over Illicit Alcohol Market  

The SANLTC expressed fears that increased taxes would exacerbate the already thriving illicit alcohol trade, which grew significantly during the COVID-19 pandemic. According to Ntimane, this illegal market is valued at R25 billion annually.  

“What will happen is liquor traders will stock less due to higher costs, and consumers will turn to illicit and counterfeit alcohol, which is dangerous and difficult to regulate,” he explained. He highlighted the dangers of counterfeit alcohol, citing alarming statistics from neighboring countries. “In Mozambique, 73% of spirits are fake. South Africa could face a similar crisis if the government doesn't work with us to combat illicit trade.”  

Call for Unified Strategy  

The SANLTC criticized the fragmented regulatory framework governing liquor laws in South Africa, where each province enforces different rules. “We need a unified national approach to tackle alcohol abuse,” said Ntimane. “Currently, there are nine different liquor boards, leading to inconsistent strategies across provinces like KwaZulu-Natal and the Western Cape.”  

He further emphasized the need for collaboration between government departments, manufacturers, traders, and other stakeholders to develop an evidence-based strategy to address alcohol abuse. “There is no silver bullet to solving this issue, but we believe a joint effort can yield results,” he concluded.  

The National Treasury has yet to respond to these criticisms, and the extended public consultation period offers an opportunity for further engagement on the issue.


--ChannelAfrica--