Zambian Breweries contributed K332 billion in indirect taxes to the Government last year, corporate affairs director Chibamba Kanyama announced in a statement.
Mr Kanyama said the 2010 contribution has increased by 20 per cent from the 2009 payment of K278 billion.
“Zambian Breweries plc has posted K332 billion in indirect taxes to Government coffers for the 2010 period, which reflects an increase of 20 per cent in one year. The company has further recorded an 87 per cent increase in Output VAT standing at K118 billion paid in 2010,” Mr Kanyama said.
He said the rise in tax payments was largely because of last year’s reduction in excise duty on clear beer from 60 per cent to 40 per cent.
“The Government has also won by capturing tax which, otherwise, it would have continued losing. All the volume that was originally in the hands of the smugglers moved to Zambian Breweries.
“We have now been able to increase our sales volume and this benefit is not only for us but also for government that is now able to collect tax from us, and also for the consumer who is now getting our products at a reduced charge,” Mr Kanyama said.
He said with the reduction of excise duty last year, companies such as Zambian Breweries will become more profitable and this would lead to an increase in Pay-As-You-Earn, corporate and other taxes and licenses paid by suppliers and distributors.
[Times of Zambia]
someone tell me how this compares to the tax Zambia is getting from the copper mines…
and also for the consumer who is now getting our products at a reduced charge
The consumer in this case must not be someone below the age of 18. Too many young boys and girls are patronising drinking places these days. Some form of law should be place to safe guard the young ones.
Copper sales are zero rated so the govt collects zero tax on copper sales. Becoz of this, all VAT paid by the mining companies to suppliers and contractors is claimed by these mining companies from ZRA. The net result is mining companies companies paying almost nothing to ZRA. They only remitte PAYE, Company income tax which is reduced by inflated costs and ambigous prices reflected in their sales revenue. As Fundanga is saying, if laws can be changed, say copper sales be standard rated, things would change
Zambian Breweries is an efficient corporate citizen. there are no Indian tacticts to conceal indirect taxes; no backdoor negotiations with government to run away from paying genuine tax obligations. but i agree with #2 under-age drinking must be managed. the WHO assessment on alcohol consumption: “Worldwide consumption in 2005 was equal to 6.13 liters of pure alcohol consumed per person aged 15 years or older”; 28.6% of all alcohol consumed was “homemade, illegally produced or sold outside normal government controls”
Wow! Under age drinkers have really contributed to Zambia’a coffers.
Ba chakolwa!
The Botswananian president two years ago raised tax on all forms of alcoholic beverage in that nation. He cited family breakups and low worker productivity as a major contributing factor to his descision. The topic was up for debate on BBC. Half of the respondent blog posts were from you guessed it, Zambia. They were negative t
Continued: they were negative towards this move, stating that other leaders in the region might catch on to the trend and implement this good law against peoples freedoms. I shook my head, we are to support progressive moves, no wonder Ghana and Botswana keep blazing a trail in Africa of how to spearhead development.