Minister Enoch Godongwana will deliver the medium-term budget policy statement (MTBPS) at a National Assembly sitting on Wednesday afternoon (21/10), outlining the government’s revised economic outlook and adjusted expenditure estimates. The call comes amid concerns about harmful drinking in South Africa, with advocates pushing for minimum unit pricing to be introduced alongside alcohol excise tax reform.

Minimum unit pricing is essentially a floor price set per unit of alcohol. The more units of alcohol a drink contains, the more expensive it would be, preventing high-strength alcohol from being sold cheaply. The proposed measures aim to make cheap, high-strength alcohol less affordable, particularly for heavy drinkers, while limiting the impact on moderate consumers.

Rethink Your Drink project leader Kashifa Ancer said pricing reform could help reduce alcohol-related harm, including violence, disease and accidental deaths, but stressed it must form part of a broader government strategy. She also called for stronger enforcement against illicit alcohol trading and coordinated measures to address harmful drinking.

“What we are looking for in the policy statement is an indication that there is a roadmap for the 2027 budget, with a commitment to transforming alcohol excise taxes and considering minimum unit pricing.

“When we reduce access to alcohol, we reduce the likelihood of violent crime, disease burdens and accidental deaths. Pricing policies can help address some of the alcohol-related harm we see in society.

“Pricing is not a silver bullet. We need other departments to come on board, including looking at alcohol advertising and trading hours, so that we can implement a package of measures that will have the greatest impact.”

“We need to understand that just because illicit trade exists, it does not mean we cannot introduce legislation within the legal market. Concerns about illicit alcohol should not prevent us from addressing harmful drinking.”

The MTBPS allows parliament to assess how government intends to balance economic growth, service delivery and fiscal sustainability amid competing demands on the public purse.

It also sets out government’s economic policy framework, updates economic forecasts, adjusts departmental budgets and provides for emergency spending. It updates economic forecasts and expenditure plans within the Medium-Term Expenditure Framework.

OFM News/Zenande Mpame sm

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