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The proposed move by the South African government to increase the tax on alcohol this year is a welcome move in the right direction, says the Health Tax Alliance. 

The tax will help to reduce the high level of violence linked to excessive drinking. But it will also help to reduce the burden on the country’s burgeoning public health system that treats 80% of the population. And generate revenue that could help to fill the gaps in the delivery of services at the district health level. 

Delivering his state of the nation address last night, SA President Cyril Ramaphosa drew the links between alcohol abuse violence, road accidents and crime, saying that as part of measures to address the scourge, the government will introduce various tax measures. 

“As national government, we have proposed measures to curb excessive alcohol use, including minimum unit pricing or higher excise duties and greater restrictions on alcohol advertising, which we are consulting on with stakeholders,” said Ramaphosa. 

The tax is part of a series of measures to address the scourge of alcohol in SA, which includes regulation of alcohol by limiting the density of liquor outlets, restricting trading hours and ending the sale of alcohol in large containers.

For the past year, the Health Tax Alliance has been calling on government to increase taxes on sugar, tobacco and alcohol products to reduce the levels of consumption of these products as well as the burden of disease caused by them. Increased health taxes have also been mooted by the World Health Organisation as a tool to generate revenue. 

Rural Health Advocacy Project Executive Director, Russell Rensburg said the tax was coming at the right time. 

“South Africa’s health system is at a critical juncture – we have so many disease priorities to consider including HIV, TB and a growing burden of non-communicable diseases. We  need to find ways to deliver integrated services by reducing the burden on the system."

A review of the taxes on alcohol has been on the cards since 2024, when National Treasury first released a working paper on it. 

"We are glad that government is taking this seriously and thinking about the health and wellbeing of its citizens," added Rensburg. 

He said he would await further announcements in the budget vote later this month.

Issued by Health Tax Alliance