Alcohol sales ban will fuel growth of illicit trade says Liquor Association

Alcohol sales ban will fuel growth of illicit trade says Liquor Association

The South African alcohol industry says it fears restricting the legal trade of alcohol will fuel the growth of the illicit market.

Alcohol sales
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The sale of booze is banned at liquor outlets, restaurants and bar for the next two weeks and a bit.

The industry says it agrees with the President that there is a need to reduce the risk of transmission of new cases.

READ: Netcare medical staff's holidays cut short, as COVID-19 pressure mounts

But it believes an outright ban will cause irreparable damage to some businesses. 

Chairperson of the South African Liquor Brand Owners Association, Sibani Mngadi, says the limitation of the sales can be imposed in a less damaging manner. 

"The total prohibition of all formal sales were lead to a further rise in illegal sales by criminal syndicates, which we did experience during lockdown level 5 and 4. 

This poses a danger for consumers and a further loss of revenue for government as these syndicates do not pay any tax. limited liquor sales for home consumption only under the current level 3 regulations will resolve this problem.  

The industry is asking government to review the ban over the next 14 days if the health situation improves. 

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