Budget 2026: HEINEKEN Beverages welcomes SA excise tax announcements amid illicit alcohol trade
3 min read
HEINEKEN Beverages acknowledges Finance Minister Enoch Godongwana’s consideration of the current socio-economic environment and the ongoing growth in illicit trade in his Budget Speech.
HEINEKEN Beverages has long maintained that, given these two factors, excise adjustments that follow inflation are essential to promoting fairness, stability and long-term sustainability across all alcohol categories.
Millicent Maroga, corporate affairs director, says she welcomed the more balanced approach to this taxation, particularly following President Cyril Ramaphosa’s recent acknowledgment during the State of the Nation Address that the illicit alcohol trade remains a high-risk sector requiring decisive action.
“We welcome the announcement of the National Illicit Economy Disruption Programme and look forward to partnering with the government is this critical workstream.”
She adds that keeping excise increases predictable and inflation-linked is an important step toward supporting legal industry players and ensuring enforcement and compliance efforts can be effective. “In simple terms, inflation-aligned increases help narrow the price gap between legal and illicit products, strengthening the fight against illegal trade.”
A balanced excise policy is crucial to achieving the government’s stated objectives of promoting responsible consumption, safeguarding revenue and reducing the attractiveness of the illicit market. The amount of illicit alcohol traded in South Africa has increased by 55% since 2017, correlating strongly with periods of above-inflation excise increases.
Maroga says: “South Africa needs coherent policy and regulatory measures that acknowledge the challenges legal businesses face against entrenched illicit trade and the criminal networks behind it. The Budget announcement reflects progress toward a more supportive and stabilising policy environment.”
These sentiments echo those of current SA Revenue Service Commissioner Edward Kieswetter, who emphasised in a recent article that illicit trade undermines the economy, fuels corruption and erodes legitimate industry. He stressed the need for scale, co-ordination and political resolve in combating these threats.
Maroga adds: “Our industry drives economic activity across agriculture, tourism, hospitality and manufacturing. Ensuring a stable, inflation-aligned excise framework helps protect this integrated value chain and supports the livelihoods of thousands of South Africans.”
She emphasises it remains critical that CPI-linked excise increases become a sustained and predictable trend, cautioning that a once-off adjustment, while welcome, risks undermining the progress made toward stability and policy certainty.
“As National Treasury embarks on its policy review consultations this year, this Budget announcement should serve as a foundation to inform future policy decisions and entrench a more balanced, evidence-based excise framework.”
Image credit: Freepik/kstudio
