E-Malt.com News article: Solomon Islands: Beer prices to increase after tax rise

Prices of beer products in the country have now increased, Solomon Star News reported April 16.

This follows an order issued by the Minister of Finance Snyder Rini last week to all beer importers and manufacturers.

Mr Rini had told parliament last month that government will cut goods tax on rice and increase tax on beer and by 20 per cent.

An official from the finance and treasury department said the order to increase tax duty alcohol product was issued a week ago.

It came at the time when the announcement of tax abolishment for rice was made.

“Most of the manufacturers and importers of these products should by now received the government’s order,” the official said.

Two separate taxes were imposed which include excise and import duties.

The country’s major beer producer confirmed receiving the order and said prices would increase with immediate effect.

Solbrew General Manager Muagututia Lafaele Ngau Chun said his office received notice on the proposed increase on Monday.

“The new price increase becomes effective immediately,” he said.

He was unable to give details of how much the company will be charging its customers.

However, he said there are discrepancies with the tax increase orders and he was not happy.

“We are disappointed because we do not see a corresponding increase for imported beer, spirits, wine or even the locally produced mixed drink by Szetu Saratoga.

“Therefore it appears only our customers will be affected,” he said.

He questioned why only two local industries are penalised.

“We will be following up these concerns with the controller of Customs,” he said.


18 April, 2008