Latest news with #R16.5bn
TimesLIVE
01-07-2025
- Business
- TimesLIVE
SA's illegal alcohol trade costs R16bn in lost tax revenue
South Africa's illicit alcohol market has grown by 55% over the past seven years, outpacing growth of the legal alcohol market, and is now worth R25.1bn. This has prompted a call from the Drinks Federation of SA (DF-SA) for collaboration between the government and the private sector to fight the growth of illicit trade in alcohol which has cost the government R16.5bn in lost tax revenue. Benjamin Rideout, research consultant at Euromonitor International, said nearly one in five alcoholic drinks sold in SA is illegal. 'Unlike some countries where home brews are the issue, SA is facing large-scale counterfeiting. The situation demands better control over production inputs like ethanol and much stronger enforcement.' The chair of DF-SA and CEO of SAB, Richard Rivett-Carnac, said illicit alcohol distorts the market and undermines trust in legitimate brands. 'In a tough macroeconomic environment, consumers are looking for bang for buck, goods that are affordable and the price gap of between 37% and 70% between illicit and legal alcohol makes illicit products more appealing, especially in low-income communities. He said 67% of surveyed consumers in the Euromonitor study, for instance, said they would knowingly buy illicit alcohol due to the lower price.' Moreover, he said illegal alcohol is a growing threat to South Africa's economy and public health. 'It drains billions from public funds, threatens jobs, and weakens the formal legal, taxed alcohol industry. Understanding the drivers of illicit alcohol growth and its magnitude is a step in the Right direction but we need stronger collaboration with the industry and government to really start removing the incentives that allow for the illicit market to thrive and intensifying enforcement.' During a panel discussion, Dr Shamal Ramesar, head of research at DF-SA, said 'communities are at risk, and the economy is the biggest loser when we delve into the pervasiveness of illicit alcohol. Recent testing with the University of KwaZulu-Natal found that many illegal products contain dangerous substances like methanol, which can cause serious harm. Unless we shut down illegal producers and educate consumers, lives will continue to be at risk.' DF-SA also announced a new national awareness campaign to help South Africans recognise illegal alcohol and understand the risks. The campaign will include tools for traders and consumers, tips on spotting fake products, and information on how to report them.
IOL News
22-04-2025
- Business
- IOL News
Tariff hikes in City's draft budget face backlash from civic groups
Civic associations are pushing back against the City's 2025/2026 Draft Budget due to steep fixed charges, which they say will impose financial strain on middle income homes. The public has until May 2 to comment on the R84.1 billion draft budget, which Mayor Geordin Hill-Lewis tabled in last month's Council meeting. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The infrastructure investments include over R16.5bn for water and sanitation, R5bn for electricity grid upgrades, R3.4bn for roads, and a further R4.5bn for the new MyCiti bus route linking Khayelitsha, Mitchell's Plain and a host of other communities with Wynberg and Claremont. As part of the City's R6.7bn Safety and Security budget, the mayor said over 700 new municipal police officers will be deployed. Hill-Lewis announced major tariff restructuring reforms, which are expected to shield lower income households from financial pressures. In this reform, water and sanitation fixed charges will now be determined by property values rather than connection size; while electricity rates will rise by 2% on average. Residents will also see a City-Wide Cleaning Tariff explicitly reflected on their bills from July alongside refuse removal. According to Hill-Lewis, this is not a new expense as customers previously helped fund this via property rates, and the tariff will be fully buffered by the reduction of electricity costs going to other forms of service delivery. The increases from the tariff restructure have provoked strong opposition from civic associations. Tokai Residents' Association chairperson, Don Kourie, says they are firmly opposed to the tariff restructure, noting that the City's Tariff Calculator shows a potential 20% increase in monthly rates bills for homeowners. 'The new cleaning tariff is unacceptable — it's based on property value, yet the service benefits all residents equally, not individual homes. 'The water connection tariff will also be based on property value. A fixed fee for every property, as there is for refuse collection, rather than a property value-based mechanism, would be more appropriate,' Kourie says, arguing that the current method is inequitable. 'Rates and refuse charges are going up by 7–8%, well above the current 2.8% inflation rate. These new tariffs fail the City's own promise of equity and fairness. Many residents, especially pensioners on fixed incomes, will face an unfair and disproportionate burden.' Keith Barton, Bergvliet Meadowridge Ratepayer's Association chairperson, says the draft budget places the burden on middle- and upper-income households with sharp hikes in fixed charges — all tied to property value. 'If approved, this budget will cause financial strain for many middle-income homes. "A typical R4.2 million property in our suburbs would pay R920 more per month in fixed charges — irrespective of the amount of electricity and water consumed. Households with solar and boreholes using minimal City services could see monthly municipal bills rise by over 30%. 'The City says this new structure ends the past practice of cross-subsidising other municipal services via electricity sales. We do not believe that municipal charges should be so heavily skewed towards a property's value instead of its consumption of services.
