The South African Alcohol Policy Alliance South Africa (Saapa) has thrown its weight behind the National Treasury’s proposed reforms to alcohol taxation, arguing that changing the way beer is taxed is a critical step toward addressing the country’s severe binge-drinking crisis.
Speaking after the National Treasury’s oral submission hearings on Thursday, the alliance also supported proposals for a tiered beer excise system and the introduction of a minimum unit pricing (MUP) framework.
MUP is a public health strategy aimed at eliminating ultra-cheap and high-potency alcohol on the shelves. Rather than relying on traditional volume taxes or luxury levies, MUP sets a statutory price floor determined strictly by the actual alcohol content of the beverage. Under this framework, it is illegal for any manufacturer or retailer to sell a drink below this calculated baseline.
The organisation said South Africa continued to experience severe alcohol-related harm driven by high levels of binge and heavy episodic drinking.
It said the National Treasury estimated that about 59% of drinkers engaged in heavy episodic drinking, with beer the most widely consumed alcoholic beverage in the country.
Given beer’s dominance, the alliance said targeted reforms to beer pricing and alcohol strength are critical for achieving meaningful public health outcomes.
The alliance also welcomed Treasury’s proposal to introduce differentiated excise bands for beer based on alcohol content. These are 0.5% to 2.5%, 2.5% to 9% and 9% to 15% ABV. The alliance described this proposal as a progressive, evidence-based intervention aligned with international best practice.
It said the proposed system is expected to incentivise manufacturers to reduce alcohol strength while discouraging the production and consumption of higher-strength beverages linked to greater harm.
Building on its written and oral submissions, the alliance recommended refinements to strengthen the proposal. Specifically, the organisation proposed adjusting the second tier from 2.5% to 9% ABV to 2.5% to 3.5% ABV and introducing an additional tier between 3.5% and 6% ABV.
It said most beers consumed in South Africa fell within the 4% to 6% range, and this adjustment would create a more immediate incentive for reformulation toward lower-alcohol products while supporting innovation consistent with public health objectives.
The alliance also welcomed Treasury’s openness to considering MUP as a complementary measure.
It said in the South African context, where cheap alcohol products are widely available, MUP is a critical intervention to curb harmful drinking patterns, particularly in vulnerable communities. By preventing deep discounting and ultra-cheap alcohol sales, MUP supported broader public health goals.
“While the proposed beer tier system is a significant step forward, refining the tiers and introducing minimum unit pricing will ensure the strongest possible impact,” said Nomcebo Dlamini, representing the Saapa/True Cost of Alcohol campaign.
She said alcohol pricing must be part of a broader strategy to protect communities, reduce violence and ease the burden on the country’s health system.
Saapa SA said South Africa cannot continue to treat alcohol primarily as a revenue source while communities face escalating harms, including violence, road deaths, gender-based violence, mental health challenges and increased pressure on health and social services.
TimesLIVE
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