The Research Unit in the Economic Excisable Products at the University of Cape Town in South Africa (SA) says a track-and-trace system, which is currently under government consideration, will go a long way towards curbing the illicit trade in alcohol.<\/p>\n
The research body has refuted industry claims of a 55% increase in illicit alcohol sales in the country between 2017 and 2024. It says it was legal traders who saw a surge in alcohol sales during that period.<\/p>\n
The National Treasury is reviewing the alcohol taxation framework to increase taxes according to the alcohol volume content of each product.<\/p>\n
The unit’s Corne van Walbeek says they do not deny the existence of the illicit alcohol industry, but the legal industry’s inclination to protect its own interests should also be considered.<\/p>\n
“We are not saying that there is no illicit alcohol. There is illicit alcohol and it needs to be addressed. However, what we do say is that the industry’s claim of a 55% increase in illicit alcohol between 2017 and 2024 is firstly not supported by the research that it’s supposedly based on, and secondly, it’s just not logical. How can there be such a huge increase in illicit alcohol if there is a substantial increase in both aggregate and per capita terms in legal alcohol? It just does not make sense.”<\/p>\n
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