Beverage sector players in Angola propose amendment of excise duty rates

ANGOLA – The Association of Beverage Industries of Angola (AIBA) has made a proposal to the Angolan Tax Authority to reduce the excise duty rates charged on beverage products.

According to reports by Angolan Press Agency, the current rates applied are 25% for spirits, beers and wines, and 19% for soft drinks with AIBA proposing a change to 8% for soft drinks, 11% for beers, 15% for wines and 21% for spirits.

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For water, the association advocates the insertion of this Value Added Tax (VAT) in the purchase, since it is essential to reduce the price so that it is accessible to all.

The Ministry of Finance through the General Tax Administration (AGT) is currently analysing the values.The reports have indicated that the amendments could be adopted in March 2021.

The move has been triggered by the beverage sector facing a 30% reduction in orders which has led to the decline in sales which currently stands at 500 billion (US$750m) kwanzas/year.

Angola’s beverage sector has an installed capacity of 2.5 billion litres/year, with local consumption accounting for 40% of production i.e.  1.2 billion/year with the surplus of 60% exported.

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AIBA currently has 40 beverage manufacturers operating in the country, in the categories of beers, soft drinks, sums and non-carbonated nectars, table water, wines and spirits.

By 2019, the sector employed more than 14,000 people directly and 45,000 indirect.

Other than duty reduction, AIBA is also advocating for greater supervision of companies operating outside the association, to ensure they abide with the international standards applied.

Angola’s beverage sector has an installed capacity of 2.5 billion litres/year.

Kenyan alcohol manufacturers seek rules to govern bar operations

In Kenya, the Alcohol Beverages Association of Kenya (Abak) has petitioned the Health ministry to publish the rules based on the standards operating procedures agreed ahead of reopening bars in September.

Bars had committed to cut sitting capacity by half under social distance rules, have contact free-bill payment, restrict drinking at the counters and some were to instil protection screens to curb spread of Covid-19.

But since reopening of bars on September 28, the Health ministry is yet to publish rules to guide sit-down drinking in public places.

This comes amid a spike in Covid-19 cases that has seen infections jump 45 per cent to 56,601 over the past month while deaths have increased by 42 per cent to 1,027 in the same period.

“It was expected that the standards operating procedures would be published after the presidential address to allow…compliance with Covid rules within bars and pubs. However, the procedures are yet to be published,” Abak said in a letter to the Health ministry.

“In the absence of the protocols, Abak has observed unsafe socialising behaviour by a few establishments that are operating with little regard to the Covid-19 guidelines.”

Kenya shut down bars on March 25 before the partial reopening on September.

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