The KwaZulu-Natal government is cracking down on fake alcohol which costs South Africa over R11.3 billion in lost tax revenue.
On Wednesday, a joint operation in Westmead in Pinetown, led to the arrest of four suspects involved in the manufacturing of counterfeit alcohol.
According to the provincial Economic Development, Tourism and Environmental Affairs Department, the move comes as part of a broader campaign to shield honest entrepreneurs in the liquor industry from illicit activities that have been plaguing KwaZulu-Natal.
The operation was a collaboration between the KZN Liquor Authority, the Department of Agriculture, Fisheries and Forestry, and Diego South Africa, the nation's leading premium spirits company, based in Isipingo, south of Durban.
“The tavern industry is estimated to be worth between R40 billion and R60 bn and accounts for 80 to 90 percent of township alcohol sales and 43 percent of all alcohol sold in South Africa,” MEC for Economic Development, Tourism and Environmental Affairs Siboniso Duma said.
“KZN is contributing tremendously to the national figures. Importantly, the liquor industry has a wide and deep value chain employing almost thousands of people. As the department, we affirm our commitment to protect our economy and local liquor license-holders from counterfeit alcohol that is flooding the market,” he said.
The illicit alcohol trade, which costs the nation over R11.3 billion in lost tax revenue, poses a significant threat beyond the financial implications. There are growing concerns about potential job losses and the health risks posed to unsuspecting consumers.
According to the department, the KZN Liquor Authority has been proactive in licensing entrepreneurs from townships and rural areas, aiming to stimulate these local economies.
Currently, they service over 8,000 liquor license-holders across the province.
Township taverns, which account for a whopping 80 to 90 percent of township alcohol sales and 43 percent of all alcohol sales in the country, are estimated to be worth between R40bn and R60bn.
KZN's contribution to these figures is substantial, with the liquor industry employing thousands and playing a crucial role in the province's socio-economic development.
The department said the importance of the liquor industry extends beyond direct sales. Sectors like tourism, hospitality, and entertainment are heavily reliant on a thriving liquor market. Recognising this, the department reaffirms its dedication to safeguarding the economy and local liquor license-holders from the surge of counterfeit alcohol.
To bolster these efforts, the department has pledged to enhance its collaboration with law enforcement agencies, SA Revenue Services, and various liquor associations and manufacturers, ensuring the province's liquor industry remains robust and legitimate.
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