Nipate
Forum => Kenya Discussion => Topic started by: gout on October 13, 2014, 07:51:11 AM
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According to Mr Lawrence Maina, the General Manager of East Africa Malting Limited (EAML), the introduction of this tax raised the prices of 300ml glass of Keg brand from Sh30 to Sh45-50 as the burden was passed on to consumers.
“This tax caused a 75 per cent drop in sales, reducing the brewer’s sorghum use to only 2,500 metric tonnes per month and shutting down production shift from seven to three days a week,” Mr Maina said.
He explained that people who sell illicit brews were recruited and given incentives to form part of EABL distribution and retail network for sorghum beer — an opportunity to run profitable and legitimate businesses.
“Increased use of sorghum provided incentives for many players along the value chain. Farmers increased acreage, other people invested in stores and bulk grain handling, transport, while seeds and fertilisers firms also expanded their distribution,” he said.
http://www.nation.co.ke/news/Sorghum-Alcohol-Brewing-Tax-Finance-Bill/-/1056/2483172/-/13dfwuuz/-/index.html
that Adan and Songa guy need to get serious given what is happening to what remains of manufacturing sector .....
with current goings on looks like we will end up with so much excess power which we will still have to pay and subsidise kenya power and kengen
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The appointment of Adan remains in my view a disaster.
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This is classic example of how not to tax a product
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This is classic example of how not to tax a product
Pundit
Are they still taxing timber imports? I plan to bring in mature and high quality soft wood.