Uganda: Beer prices will not be reduced despite the excise tax being cut to 40%

Beer lovers will continue to pay the current price of the drinks for a while following a decision by the government not to increase the tax on beer made and sold in Uganda, the Monitor reported on June, 29.

Officials at Uganda Breweries Ltd and Nile Breweries Ltd say the price of malted beer will not be affected as a result government’s decision to reduce excise tax – duty charged on goods produced within Uganda, from 60 per cent to 40 per cent.

Mr Onapito Ekolomoit, Nile Breweries’ corporate affairs director said: “There will be no effect on beer prices,” adding that they are contended with government’s decision.

As the government’s decision drew excitement at Nile Breweries, the story at Uganda Breweries was different as it imports most of its malted beer from its parent company East Africa Breweries Limited in Kenya. This means that UBL will continue to incur a higher tax burden as Nile enjoys lower costs of doing business.

01 July, 2009