ZAMBIAN BREWERIES WELCOMES REDUCTION IN EXCISE TAX ON CLEAR BEER
LUSAKA, ZAMBIA – October 9, 2015 – Zambian Breweries has welcomed the government’s announcement of a reduction in excise tax on clear beer.
In his 2016 Budget submission to Parliament, the Minister of Finance Hon. Alexander Chikwanda, announced that excise tax on clear beer will be reduced from 60 percent to 40 percent.
The move is intended to restore competitiveness in the local clear beer industry, encourage investment and curb smuggling and the consumption of illicit alcohol.
“We commend the government for taking this move to increase productivity in the clear beer sector and stimulate forward and backward linkages. This gives us the confidence to invest further in our business for the long-term, thus creating more employment and stimulating purchases of agricultural inputs from local farmers,” said Zambian Breweries managing director Annabelle Degroot.
The revised rate would increase revenue collection for the government in the medium and long term, as well as create additional employment, she added.
The reduced excise tax rate will drive Zambian Breweries’ investment in manufacturing in the country and boost the supply of barley from local farmers to its new U$32 million malting plant being built at the Lusaka-South Multi-Facility Economic Zone (MFEZ). It will also increase local sourcing of maize, and cassava from small-scale farmers.