TAXING LOCAL RAW MATERIALS BEER: Balancing tax appetite with the need for safer alcohol, brewed in a sustainable grain-to-glass value chain Since the introduction of excise duty on beer made from local raw materials around 2003/2004, local industry producers have continuously challenged the government over what in their view, they think is a rather rushed move that curtails the growth of a budding subsector, before it reaches full bloom. The private sector argues that increasing the tax burden on local raw materials beer is counterproductive as it not only stunts the larger value chain, but it also never yields the desired revenue increments, because it only succeeds in killing aggregate demand in an extremely price-sensitive consumer segment. Faced with price increments, driven by a heavier tax load, consumers often tend to resort to cheaper illicit alcohol, that doesn’t even pay any taxes and is a health hazard.