Zambrew in record excise tax contribution for 2017
ZAMBIAN BREWERIES PLC, a subsidiary of global brewing giant AB InBev paid ZMW22.6 million (USD2.4 million) in excise tax to the government in 2017 financial year -twice the amount paid over the last 2years put together. This was established at the Annual General Meeting held at the Southern Sun Hotel in Lusaka on 29th March, 2018.
Zambian Breweries outgoing Finance Director Faith Mukutu said that the growth in excise duty paid demonstrates the effectiveness of government’s decision to scale down the excise tax on cassava-based beer from 20%-10%.
In 2014, Zambian Breweries paid ZMW6.6-million in excise tax to the government on its Eagle Lager. That rose to ZMW7.8 million in 2015, ZMW13 million and ZMW22.6 million in 2017.
And Zambian Breweries’ Country Director Jose Moran says Eagle Lager was a high-flying and progressive brand that contributed to the national treasury and positively impacted the lives of small-scale farmers in Luapula Province and Kasama District.
The soaring production of Zambian Breweries’ affordable Eagle Lager has been spurred by the favorable excise rate of 10% on cassava-based beer when compared to 20% excise rate that was based on a lower content of the crop’s input.
In its quest to promote national prosperity through its value chain, the brewer has embarked on local sourcing of key agriculture products such as cassava.
Since the start of the company’s initiative in 2016, the brewing giant, along with its partners, has ventured into an outgrower scheme that started with just 1,000 small-scale farmers in Luapula Province.
The project now provides a market and livelihoods for more than 4,000 small-scale farmers, stretching into Kasama district, and the project is poised to reach 5,000 small-scale farmers by the end of the year.
“Zambian Breweries has seen cassava’s potential to contribute to the economy, as witnessed by the progressive growth in excise tax paid on Eagle Lager between 2014 and 2017,” said Moran.
Mr. Moran said the company was committed to enhancing value addition through enhancing the livelihoods of those involved in Zambian Breweries’ value chain.