The cost of alcohol ban in South Africa
PRETORIA,South Africa.（News of the South）-While the ban of alcohol and tobacco in South Africa has been well meaning, there is increasing evidence that the prohibitions have caused great damage to South Africa’s fiscus.
By Karen Mhlanga
“Excise duty collection, which includes levies on alcohol, tobacco products and fuel, fell by 42% year on year in the three months up to June,” the Bureau for Economic Research noted.
Distell Chief Executive Officer Richard Rushton says the tax they lost from the first six week ban on alcohol sales alone came to R15.4 billion.
“We have to ask whether an outright ban on alcohol sales can be justified when the damage outweighs the benefits,” he said.
“The long-term damage will be immense- wine farms, restaurants, glass container manufacturers and taverners are all bleeding and many will not survive.”
Although it was done to free up hospital for Covid-19 patients, one cannot help but wonder if the government will be able to keep it up with over 100 000 job loses.
Comments
About Author
