By Lamin Njie
Brewers in The Gambia have hit out at the government over its decision to impose new taxes on alcoholic beverages.
The Gambia government through the Ministry of Finance last week announced a 75% tax rise on wine and beer – a policy that has started to elicit bitter criticism from which the brewer community.
A senior official at Banjul Breweries Ltd told The Fatu Network the move is ill-advised.
“Excise hike from 10% to 75% is found in no country in the whole of Africa. This will have a negative impact on the beverage manufacturing industry and the economy,” the senior official said on the condition of anonymity.
The Gambia government says the move will which also affect sugary drinks is to shore up the country’s revenue.
However, brewers are contending that the move if anything will shrink tax revenue from alcoholic beverages by almost 50%.
“Tax contributions by Banjul Breweries Ltd in 2017 was a whopping 120 million dalasis and is expected to contribute and increase from 120 million to about 150 million as tax to government for year ending 31st December 2018 at the current rate of 10% excise and 15% of VAT,” the senior Banjul Breweries official said.
“The increase excise tax for 2019 will therefore lead to a reduction in volume sales by 40 to 45% and this will leave the company with no option but to reduce the staff number from 150 to 95.”
The Gambia government’s new policy will also likely have an impact on the tourism industry as beverage sales by hotels are expected to drop by 25%.
