Buy booze legally, alcohol industry appeals to SA

The alcohol industry says closing the tax leakage from the illicit alcohol trade is critical for SA's post-lockdown economic recovery.

This comes after SA Revenue Service (Sars) commissioner Edward Kieswetter expressed concern that it could take years to dismantle the criminal networks that entrenched themselves as a result of the ban on the sale of alcohol during earlier stages of the Covid-19 lockdown, Bloomberg reports.

Sibani Mngadi, spokesperson for the alcohol industry, said “the closing of tax leakages and efficient collection of revenue is one of the key priorities for the country’s economic recovery. The alcohol industry is committed to working with Sars to find solutions to the problem of illicit trade, which poses a mutual revenue risk for government and the industry.”

The National Treasury reports the government lost R9.5bn in alcohol and tobacco taxes combined during the first four months of the fiscal year.

The illicit market has a detrimental effect on the overall economy as it does not contribute to the government fiscus. It also harms the entire value chain that sustains thousands of farming, packaging, distribution and township-based entities, Mngadi said.

“We are deeply concerned about the safety risks associated with the consumption of illegal concoctions and the commercial growth of an illicit alcohol network. Unregulated alcohol is not subject to stringent quality control measures. As witnessed during the two bans on alcohol sales, the illegal manufacture of alcoholic concoctions posed serious health risks to consumers. We urge consumers to purchase their preferred products from licensed outlets only,” Mngadi said.

TimesLIVE