Govt Throttles Tipplers With 30% Levy

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After suspending implementation of the controversial 70 percent levy on alcohol for consultations with BOCCIM and other stakeholders, the government announced the imposition of a reduced levy of 30 percent last Friday.

The levy and "stern" measures accompanying it will go into effect on October 1.
This is inspite warnings that a levy would leave over 45 000 people in the alcohol value chain in the lurch, lead to the possible closure of Kgalagadi Breweries and spur inflation.
The levy comes with a warning that if alcohol consumption does not decline in six months, sterner measures will be considered. "If there is no visible improvement, government will consider introducing additional measures, including the possibility of increasing the levy," says a statement from the Ministry of Trade and Industry.
Although the government says the 30 percent levy is in accordance with BOCCIM's advice, the biggest organisation of businesses in the country has demurred the claim, saying its expectations were far different.

"We receive the announcement with reservations," says Maria Machailo-Ellis, the body's CEO. "It could have been better. We feel that we submitted several alternatives (as a means) to curb problems associated with alcohol."

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