Tax volumes from Ngule, Senator drop by Shs9b
Uganda Breweries Limited (UBL) has said tax collections from its low cost beer family, which include Senator and Ngule have dropped by Shs9b
Uganda Breweries Limited (UBL) has said tax collections from its low cost beer family, which include Senator and Ngule have dropped by Shs9b.
Mr Mark Ocitti, the UBL managing director, said this while commenting on the company’s half year results in Kampala yesterday, explaining that Excise Duty, which had been introduced on the two beer brands last year had not only impacted sales but also tax remittances.
“Government collections from Ngule and [other] affordable beer category from us dropped by about Shs9b last year,” he said.
Government this financial year introduced Excise Duty tax amendments that saw beers such as Ngule and Senator attract a Shs200 levy.
Since UBL could not shield the tax implications from the final consumer, the brewery had to increase the price of such beers from Shs2,000 to Shs2,200.
UBL, Ocitti said has in the last three years remitted around Shs190b in taxes per annum to the Uganda Revenue Authority.
However, because of the increased tax levy, the brewery said volumes of the Ngule and Senator brands have declined by 30 per cent, which has in turn affected its tax remittances and payments to farmers.
Taxes continues a negative impact on most beer sales, data shows.
