Treasury extends period for comment on alcohol tax
Extension only applies to the discussion document on the taxation of alcoholic beverages and not any others
03 December 2024 - 14:28
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Heavy episodic drinking has become a serious issue. Picture: UNSPLASH
National Treasury has extended the period for comment on its recently released discussion paper on the taxation of alcoholic beverages.
Having received numerous requests to extend the period to comment on the discussion paper (released on November 13) on the taxation of alcoholic beverages, Treasury extended the deadline from December 13 to February 14 2025.
The paper made far-reaching proposals, including the introduction of a minimum price for alcoholic beverages, in a bid to reduce the consumption of alcohol.
However, the closing date for the other discussion documents on the tax treatment of collective investment schemes and phase two of the carbon tax remains December 13.
According to the Treasury’s policy analysis document, setting a minimum price prevents producers and retailers from absorbing some of the tax increases and reducing prices or offering large discounted prices on alcoholic products.
Treasury said it was in favour of minimum unit pricing in theory, based on the experiences of other countries that have implemented it, adding the government should think about how such a mechanism could be included in the package of interventions.
According to 2018 World Health Organisation data, about 59% of South Africans aged 15 and older who drink alcohol engaged in excessive episodic drinking. Heavy episodic drinking (the estimated daily average consumption of 64.6g of pure alcohol) is a serious issue.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Treasury extends period for comment on alcohol tax
Extension only applies to the discussion document on the taxation of alcoholic beverages and not any others
National Treasury has extended the period for comment on its recently released discussion paper on the taxation of alcoholic beverages.
Having received numerous requests to extend the period to comment on the discussion paper (released on November 13) on the taxation of alcoholic beverages, Treasury extended the deadline from December 13 to February 14 2025.
The paper made far-reaching proposals, including the introduction of a minimum price for alcoholic beverages, in a bid to reduce the consumption of alcohol.
However, the closing date for the other discussion documents on the tax treatment of collective investment schemes and phase two of the carbon tax remains December 13.
According to the Treasury’s policy analysis document, setting a minimum price prevents producers and retailers from absorbing some of the tax increases and reducing prices or offering large discounted prices on alcoholic products.
Treasury said it was in favour of minimum unit pricing in theory, based on the experiences of other countries that have implemented it, adding the government should think about how such a mechanism could be included in the package of interventions.
According to 2018 World Health Organisation data, about 59% of South Africans aged 15 and older who drink alcohol engaged in excessive episodic drinking. Heavy episodic drinking (the estimated daily average consumption of 64.6g of pure alcohol) is a serious issue.
ensorl@businesslive.co.za
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