Latest news with #taxRevenue
The Herald
a day ago
- Business
- The Herald
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. TimesLIVE
Washington Post
18-02-2025
- Business
- Washington Post
Va. lawmakers worry about data centers. But they're leery of acting.
RICHMOND — Lawmakers came into Virginia's General Assembly session with bipartisan promises of finally tackling the issue of data centers, those huge internet support facilities sprawling across the state's landscape that bring big tax revenue but also heavy demand for power and water. Now … well, maybe next year.
