TANZANIA – Serengeti Breweries Limited (SBL) has called on Tanzanian policymakers to create a more favorable tax environment that encourages industry growth and maximizes government revenue generation.
The appeal was made by SBL’s Managing Director, Obinna Anyalebechi, during a recent meeting with the Parliamentary Committee for Industries, Trade, and Environment.
Addressing the committee, Anyalebechi emphasized that a stable and equitable tax framework is essential for the sustainability of the brewing sector and beneficial to the economy.
“An unpredictable tax environment, or one that favors only certain players, disincentivizes industry growth and limits government revenue generation,” he stated.
He drew particular attention to the excise tax concession of 620/- per liter on beer produced from local malt, a policy he said creates a tax gap of 32 percent when compared to beer made from imported malt, which is taxed at 918/- per liter.
Anyalebechi highlighted the additional costs importers face, including import duties and foreign exchange fluctuations, arguing that high tax on imported malt could hinder competitiveness and potentially lead to price increases.
SBL warned that excessive taxation risks limiting revenue potential and could encourage the growth of illicit beer production, which would undermine public health and safety efforts.
The company emphasized that promoting local sourcing and supporting agricultural development would be a more effective route toward sustainable revenue growth, with potential contributions estimated at 71.8 billion/- for the sector.
Committee Chairperson Deodatus Mwanyika noted, “Our visit to SBL is a step forward in understanding and supporting initiatives that align with Tanzania’s broader goals for industrial and agricultural development.”
The committee plans to engage with other stakeholders to develop a framework that supports the growth of Tanzania’s local industries and advances its economic transformation.
Additionally, SBL also launched its 2024 Sustainability Report, themed “Championing Inclusion and Diversity.”
The report highlights the company’s ongoing efforts to create an inclusive work environment and drive positive social impact across its supply chain and within the communities it serves.
SBL has committed to initiatives under its “Spirit of Progress” action plan, which includes supporting marginalized groups and fostering sustainable development.
“We are committed to empowering marginalized groups, including women, children, and persons with disabilities, to fully seize socio-economic opportunities,” Anyalebechi said.
He reported that nearly 40 percent of SBL’s farmer-partners, many of whom grow sorghum, a vital ingredient in SBL’s beer production, are women and persons with disabilities.
SBL Board Chairman Paul Makanza also emphasized the importance of gender equity in economic development, noting that closing the gender gap could add $316 billion to Africa’s economy by 2025.
“When women have equal opportunities, economies grow, families thrive, and communities advance,” Makanza stated, affirming SBL’s dedication to this goal as part of its broader commitment to Africa’s economic growth.
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