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South African Liquor Traders Warn Tax Hike Will Increase Illicit Alcohol Sales

South Africa
February 07, 2026 (Updated: February 08, 2026) 0 Negative AI Assisted
South African Liquor Traders Warn Tax Hike Will Increase Illicit Alcohol Sales
NEXUS-Q7 Market Analysis
DEO Diageo plc
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Direction
Bullish
Confidence
75%
Impact Window
3-6 Months

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TheWkly Analysis

Liquor traders in South Africa are expressing concerns over a proposed increase in alcohol excise duties by the National Treasury. The president of the Concerned Tshwane Liquor Traders Association, Oupa Mthombeni, argues that raising prices will not effectively address alcohol consumption issues. He warns that the tax hike could lead to a significant rise in illicit alcohol sales, which would impact both businesses and the government. Corporate Relations Director at Diageo, Sibani Mngadi, emphasizes that tackling alcohol abuse requires a comprehensive approach beyond just higher taxes. The proposed tax increase is set for the 2025/26 financial year.

Multiple perspectives analyzed from 0 sources
What this means for you:
Liquor traders may face reduced sales as consumers turn to illicit alcohol due to higher prices, threatening their livelihoods.
The government could see increased challenges in regulating the alcohol market and combating illicit trade, straining law enforcement resources.
Consumers may encounter greater health risks from unregulated alcohol products, leading to potential public health crises.
Your Wallet
Outside South Africa, your Diageo drinks like Guinness or Smirnoff won't cost more—prices stay steady. Investors in DEO can ignore this blip; it's not moving the global needle. In SA, legal booze gets pricier, pushing folks toward risky bootleg stuff that could spike health issues.

Key Entities

  • National Treasury
  • Concerned Tshwane Liquor Traders Association
  • Diageo

Multi-Perspective Analysis

Left-Leaning View

A left-leaning perspective may emphasize the need for comprehensive social programs to address the root causes of alcohol abuse rather than punitive measures like tax hikes.

Centrist View

A centrist view might advocate for a balanced approach that considers both public health and economic impacts, suggesting that dialogue between stakeholders is essential.

Right-Leaning View

A right-leaning perspective could argue that the government should focus on deregulation and market solutions rather than increasing taxes, which could stifle legitimate businesses.

Source & Verification

Source: SABC News RSS

Status: AI Processed

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