The increase in alcohol excise taxes announced by Finance Minister Trevor Manuel on Wednesday is just what the doctor ordered, according to the Medical Research Council (MRC).
”The 2004 Budget reflects a growing commitment shown by the National Treasury over several years to bring excise taxes on alcohol in South Africa more in line with international norms,” the MRC said in a statement.
Dr Charles Parry, group director and advisor to the World Health Organisation (WHO) on alcohol policy matters, said the 2004 Budget reflected a real — above inflation — increase in excise tax on malt beer, unfortified wine, fortified wine, sparkling wine, ciders and alcoholic fruit beverages, and spirits.
”This is a bold move on the part of Minister Manuel who should be congratulated for taking a stand that is likely to reap real dividends in terms of public health,” he said.
Parry explained that the two main justifications for increasing excise taxes on alcohol were to correct external costs associated with alcohol consumption that were not currently being paid for by alcohol consumers and to raise revenues for programmes to reduce social burden associated with alcohol abuse.
Manuel in his Budget address in parliament said the heavy taxation of beer and cigarettes had reduced the number of consumers.
But much to the joy of Inkatha Freedom Party leader Mangosuthu Buthelezi, and to the unhappiness of the MRC, Manuel announced that the tax on traditional sorghum beer would not be increased.
”The Minister has yet again failed to address the need to properly tax sorghum beer, by claiming to be ‘calming the waters in the debate on issues related to traditional leaders’. In real terms the excise tax on traditional African beer and beer powder has been decreased by 5,2%,” Parry said.
He said research conducted by the MRC demonstrated that in 2002 almost half of all non-natural deaths in South Africa had alcohol levels greater than or equal to the legal limit for drivers of vehicles.
Acknowledging that excise taxation is not a magic bullet that will cure the ills of alcohol misuse on its own, Dr Parry indicated that increasing excise taxes on alcohol as a strategy for decreasing burden of alcohol abuse has been studied in several countries and was supported by numerous studies of effectiveness. – Sapa