As maiden ‘New Dawn Government’ hints at increased regulation of the alcohol industry…
LUSAKA, ZAMBIA – Zambian Breweries has commended the government for expressing strong political will towards growing the local manufacturing sector through import tax adjustments and taking a step in bringing sanity to the local alcohol sector through increased regulation of unpackaged beer in its maiden national Budget presentation.
Zambia’s largest brewer has described the 2022 budget as generally ‘pro-business’, adding that the pronouncements made in the document – especially regarding the manufacturing sector – could serve as a timely launchpad for local businesses to participate in the country’s industrialisation agenda.
The reduction in corporate income tax from 35 percent to 30 percent was particularly commended.
“The revised tax rate, though marginal, is commendable and will spur investment, which in turn will increase production and have a knock-on effect in terms of employment for businesses across the country. It will also boost purchases from suppliers and create more business for distributors and retails. It’s a win-win all round,” said Zambian Breweries country director Michelle Kilpin.
“We are also encouraged by government’s move to adjust specific excise duty on unpackaged opaque beer and this will help improve hygiene standards in the largely unregulated sector. This push towards regulating this part of the local alcohol sector will benefit consumers as brewers will be forced to use standard packaging materials to qualify for a lower tax bracket.”