Beer and other alcoholic drinks in South Africa could soon cost more, as the National Treasury considers a sharp increase in excise tax aimed at reducing alcohol consumption.
According to reports, Treasury recently held a virtual meeting with alcohol producers in November 2025 to discuss possible increases in excise duty on beer and wine.
One proposal under discussion is a 20% increase in excise tax on standard beer.
Why higher beer prices are being considered
According to BusinessTech, alcohol producers have warned that steep, above-inflation increases could push more consumers towards illicit alcohol, which already makes up an estimated 18% of total alcohol consumption in South Africa.
They argue this could hurt both government revenue and public health efforts.
Public health organisations, however, strongly support higher alcohol taxes.
Nomcebo Dlamini, campaign manager for the South African Alcohol Policy Alliance (SAAPA), said a 20% excise increase would “obviously” make beer more expensive, but argued it is necessary.
She said alcohol in South Africa is often too cheap, sometimes costing less than basic food items.
She said excise taxes are one of the most effective ways to reduce alcohol-related harm, and that international evidence shows people generally drink less when prices increase.
Dlamini added that higher prices could also make it harder for young people to access alcohol, reducing early and risky drinking.
She linked alcohol abuse to rising healthcare costs, noting that South Africa spends nearly R249 billion each year on non-communicable diseases, many of which are worsened by heavy drinking and binge drinking.
Dlamini stressed that higher taxes should be combined with stronger law enforcement, restrictions on alcohol advertising, and coordinated action across government departments. She added that the additional tax revenue could help fund prevention programmes and healthcare services.
How a 20% excise tax hike could affect prices
A 20% excise increase does not mean beer becomes 20% more expensive on the shelf. Excise duty is only one part of the final price, along with VAT, transport, retail mark-ups and promotions.
What does that look like in rands?
Single beer (330ml – 500ml):
- Current price: R18 – R25
- After increase: R21 – R29
- Increase: R3 – R4 per beer
Six-pack of beer:
- Current price: R90 – R120
- After increase: R105 – R138
- Increase: R15 – R20
Case of beer (24):
- Current price: R360 – R450
- After increase: R415 – R520
- Increase: R55 – R70
Excise duty is charged at production, so breweries pass the cost down the chain. Retailers then apply VAT and mark-ups on the higher base price.
That’s why even a tax increase at the factory level ends up clearly visible at tills.
