Cameroon: Trade Minister orders to freeze the prices of bottled beer in drinking establishments

The Cameroonian Trade Minister, Luc Magloire Mbarga Atangana, announced in a January 5 press release a decision to freeze the price of bottled beer in drinking establishments “until further notice” despite brewing companies’ request that prices be adjusted to reflect the hike in excise duties as stipulated in the 2015 Finance Act, Business in Cameroun reports.

Indeed, in 2015, the tax administration will be collecting 143 FCFA per litre of beer instead of the previous 110 FCFA.

The announcement made by this cabinet member follows the practices noted among some wholesalers during the end-of-year festive season. Many drinking establishments and spirit retailers refused to sell their stock in order to benefit from the adjusted duty to make a larger profit.

The situation has come about from confusion among some consumers as well as questions surrounding the level of collaboration between the Trade and Finance Ministries in this affair. Breweries have been clambering more and more for the excise duty increase to be struck down for fear of “market collapse” in 2015. From now until January 15, the deadline for tax filing in Cameroon, a final decision will be made by the ad-hoc committee set-up within the Office of the Prime Minister to examine and address this issue.

09 January, 2015