Nile Breweries Limited has asked government to scrap the tax on Opaque beer, saying it has led to the collapse of their Chibuku Production line. Nile Breweries Limited halted the production of Chibuku in July after government slapped a 30 percent excise duty on the beer.
The beer that was brewed from maize enriched with sorghum malt, cost Shillings 1,000. Onapito Ekomoloit, the Legal and Cooperate Affairs Director Nile Breweries, said they decided to close because government had failed to honor the tax holiday promised while they were setting up the plant.
He explains that government had promised to not tax the beer since it is a local brew only packaged in bottle.
Onapito, however, says the imposition of the 30 percent excise duty -Shillings 950 on the beer made it noncompetitive forcing them to halt production.
He disclosed this while appearing before the Finance Committee of Parliament which is scrutinizing the excise duty amendment bill alongside the Private sector foundation.
Onapito asked government to scrap tax since it isn’t getting anything from Chibuku since they ceased production.
According to Onapito, government would collect Shillings 5 billion from Nile Breweries Limited from the production of Chibuku.