OnTap Magazine

8 | Summer 2025 | ontapmag.co.za THE BEER ASSOCIATION OF SOUTH AFRICA CHAMPIONS FAIR EXCISE POLICY AS INDUSTRY GEARS UP FOR 2026 South Africa’s beer sector is once again stepping into a critical national debate: excise taxation. Following the Medium-Term Budget Policy Statement, the Beer Association of South Africa (BASA) is calling on government to maintain its commitment to fair, predictable, inflation- linked excise adjustments — a principle the industry sees as essential to protecting jobs, investment and long-term sector stability. BASA CEO Charlene Louw welcomed the projected 3.7% inflation-aligned increase for 2026. She says this stability gives the industry room to grow while supporting government’s efforts to strengthen the legal, taxed economy. “We support the Minister’s commitment to protecting the regulated market, especially in the fight against illicit alcohol,” she said. The urgency is undeniable: a Euromonitor study estimates that in 2024, South Africa lost R16.5 billion in tax revenue to illicit alcohol. With illegal products costing up to 37% less than legal ones, consumers are easily drawn toward unsafe, untaxed markets — a trend BASA continues working to reverse. The industry is placing strong emphasis on enforcement, with hopes pinned on enhanced SARS compliancemeasures and targeted task teams to shut down illegal operators. “Reducing tax leakage is not only a government priority; it is essential to the long-term health of our sector,” Louw added. BASA remains a leading voice for beer industry advocacy, advancing policy positions that safeguard livelihoods across the value chain and build a resilient, competitive and responsible beer market.