By Mabinti Kamara
The Sierra Leone Brewery Limited (SLBL), the leading liquor producer in the country, has defended the government’s recent move to increase tax on imported alcoholic beverages., syaing the new tax regime is sure to help boost local manufacturers.
The revenue authority in early September announced a major increase in tax for imported alcohol products as part of implementation of the controversial new Finance Act passed earlier in the year.The brewer produces a number of alcoholic brands including STAR BEER and STOUT in the country. But it has faced stiff competition from from importers of cheaper products on which it has blamed its huge losses for the last decade.
The company denies having any hand in the government’s action but maintains it is the "best move" for the country.
“The bill was passed by the government and so we are not in any way part of it, but we are very much thankful to all those who contributed in making the bill a success as when fully implemented it will help push and sustain the local production to grow in the country and even encourage those who know that it is worthwhile to have their products invested on the ground to boost the country’s Gross Domestic Products (GDP) ,” Albert Ojo Collier, Corporate Relations Manager of SLBL, told journalists.
It was the first official statement from the company since the new tax regime came into force.
SLBL is a joint venture between local investors and the Dutch company, Heineken.
Importers of local brews have decried the rationale behind the new policy direction of the government which they say was purposely done to protect SLBL.
The 2016 Finance Act grants a five percent tax for local companies using up to 80% of local ingredients for their products.
The aggrieved importers have mounted a sustained campaign against the move in newspaper publications warning of the dire effect on employment and a drastic increase in prices of alcoholic beverages.
But, insists Collier, the Act did not only seek to encourage the local manufacturing industry, it also will generate increased revenue for the government.
Journalists were taken on a conducted tour of the company’s facilities as a way of not only demonstrating its readiness to take on the market, but also to show how it has helped improved on the livelihoods of the local community where it operates.
“We assure you that our products are of international standards and we have a process of quality control through Heineken International and Diageo International (Guinness). We have also been certified by the International Standard Organization (ISO) and we have proudly renewed this certificates as and when due,” said Collier.
© Politico 2016
