Excise taxes on beer

Govt now obtains 38% of total income through a combination of levies, VAT.

- Keith Engel

Adjusting tax policies can be challenging, though certain amendments are more accepted than others. For instance, major increases in beer excise taxes seem to encounter less public concern than other types of tax changes.

While taxes aren't always the most precise way to influence behaviour, they can be effective when used primarily to generate revenue for public services. As taxes increase, so do prices. This burden falls heavily on many consumers.

Higher beer prices could lead to a shift towards illicit or potentially dangerous homemade alternatives.

While some consumers prefer craft or premium beers, many middle and lower-income individuals tend to choose more affordable options.

After hosting South African Institute of Taxation's (Sait) annual Tax Indaba, I benefited from being a guest speaker at the Beer Tax Indaba. I learned that taxes on beer have become quite substantial.