*UPDATE: THE DEADLINE FOR COMMENTS HAS BEEN EXTENDED TO 14 FEBRUARY 2025*
South Africa faces a paradox: fewer than a third of its citizens consume alcohol, yet we are among the world’s heaviest-drinking nations. Over 59% of drinkers engage in binge drinking, defined as consuming more than five standard drinks in a single sitting. This harmful pattern not only devastates families and communities but also imposes a significant economic burden on our country.
The National Treasury’s 2024 Alcohol Taxation Review proposed, in principle introducing minimum unit pricing (MUP) which is a policy instrument that will increase the price of cheap liquor favoured by the heaviest drinkers. By reassessing how alcohol is taxed, this review has the potential to save lives, reduce health and welfare costs, and promote fair economic policies. But to succeed, it needs input from the public—people like you.
The Cost of Harmful Alcohol Use
While the liquor industry contributes 2.9% – 3.6% (depending on the source) of GDP, the costs of alcohol-related harms—healthcare, welfare, and lost productivity—amount to between R245 billion and R280 billion, representing 10 – 12 per cent of GDP.
These costs include:
- Healthcare expenses: Treating alcohol-related illnesses and injuries.
- Cost to Infrastructure: Damage due to road accidents
- Welfare impacts: Supporting families affected by alcohol abuse.
- Lost productivity: Absenteeism and reduced work capacity due to alcohol-related issues.
For every rand earned by the alcohol industry, the country loses far more in direct and indirect costs.
Why the Taxation Review Matters
The National Treasury’s review examines how alcohol taxes can be used to reduce alcohol harm. Key proposals include:
- Aligning taxes with alcohol content: Stronger drinks could face higher taxes.
- Increasing excise duties: Raising taxes to reduce alcohol affordability and discourage excessive consumption.
- Introducing a minimum unit price: Setting a price floor for alcohol to eliminate ultra-cheap, high-alcohol products.
These measures aim to create a healthier balance between economic contributions and public health outcomes.
DGMT’s Position: Transforming Policies to Save Lives
This review is a critical opportunity to rethink South Africa’s approach to alcohol regulation. While alcohol consumption is a personal choice, harmful drinking behaviours—often fueled by industry practices—have far-reaching consequences for society.
Our advocacy is guided by the World Health Organisation’s five “best buys” for reducing alcohol harm:
- Ban alcohol advertising, except at points of sale, and ensure it is not visible to those under 18 years old.
- Increase alcohol prices through excise taxes and minimum unit pricing to reduce affordability.
- Lower the legal blood alcohol limit for drivers to 0.02g/100ml or less.
- Reduce alcohol availability by:
- Limiting the density of liquor outlets.
- Shortening trading hours.
- Ending the sale of large containers, such as 1-litre bottles of beer.
- Expand access to treatment for alcohol dependence, including counselling and medically assisted interventions.
Implementing these reforms will protect lives, reduce alcohol-related harm, and address South Africa’s broader inequality challenges.
A Call to Action: Your Voice Matters
The National Treasury’s review is not just about numbers—it’s about people, families, and communities. By participating in this review, you can help shape policies that promote fairness, protect vulnerable groups, and reduce the devastating impact of harmful drinking.
While excise taxes and minimum unit pricing can contribute to alcohol harm reduction, they must be implemented with other strategies such as amended liquor trading hours and increased restrictions on alcohol advertising.
How to Participate
The full policy paper can be read here.
To submit comments, send an email to 2024Alcoholreview@treasury.gov.za.
*UPDATE: THE DEADLINE FOR COMMENTS HAS BEEN EXTENDED TO 14 FEBRUARY 2025*
This is our chance to create meaningful change. Together, we can tackle the harmful effects of alcohol, build healthier communities, and set South Africa on a new path.
