Zam­brew in record ex­cise tax con­tri­bu­tion for 2017

Zambian Business Times - - FRONT PAGE -

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.

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