South Africa, Australia raise alcohol taxes to curb consumption, illicit trade

South Africa’s National Treasury has proposed increasing excise taxes on alcohol and introducing a minimum unit price, arguing that higher taxes will reduce heavy drinking, domestic violence and health costs. Industry groups have warned the measures could spur illicit trade, cut tax revenue and worsen unemployment, but health data show three‑quarters of South African drinkers exceed moderate‑drinking thresholds.

In Australia, the government’s twice‑yearly excise indexation raised the tax on spirits to about $110 per litre of pure alcohol, the highest level outside Scandinavia. Industry body Spirits & Cocktails Australia warned the hike could push consumers toward cheap, black‑market alcohol and called for reform. The tax is expected to generate $9.2 billion in revenue this fiscal year, while the Australian Hotels Association praised a recent freeze on beer excise but urged further action.