South African Breweries SAB has warned that the beer industry risks being overrun by the black market if the National Treasury follows through on its plan to hike taxes by 20 for beer with higher alcohol content in a bid to channel consumers to low-alcohol beers.
The proposal will see beer with 4-6 alcohol by volume, a measure of a drinks total volume of pure alcohol or ethanol, attract higher taxes.
The proposal by the National Treasury will see prices of popular SAB brands including Castle Lager, Black Label, Hansa Pilsner and Castle Milk Stout shoot through the roof.
