DAR ES SALAAM: Serengeti Breweries Limited (SBL) Managing Director Obinna Anyalebechi has called for a more favorable tax and policy environment to optimize government revenue generation and ensure business sustainability.
Anyalebechi made this appeal over the weekend during a meeting with the Parliamentary Committee for Industries, Trade, and Environment.
“An unpredictable tax environment, or one that favors only certain players, disincentivizes industry growth and limits government revenue generation,” said SBL Managing Director Obinna Anyalebechi.
According to Anyalebechi, the current excise tax concession of 620/- per liter on beer made from local malt is one of the taxes the government should reconsider.
“The tax concession creates a 32 percent excise tax gap when compared to beer made from imported malt, which is taxed at 918/- per liter. Additionally, importers face extra costs from import duties and forex fluctuations,” he explained.
SBL has expressed particular concern about the high tax imposed on imported malt, urging the committee to reform this disproportionate tax structure to foster a more competitive business environment.
ALSO READ: SBL launches 2024 sustainability report: Championing Inclusion and Diversity
The company warned that excessive taxes could hinder revenue growth and lead to unintended consequences in the alcohol industry, such as potential price hikes and an increase in illicit beer production.
SBL emphasized that fostering local sourcing and supporting agriculture, rather than imposing higher taxes, would drive sustainable revenue growth, estimated at 71.8 billion/-.
Committee Chairperson Deodatus Mwanyika stated, “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 insights gained from this engagement will be instrumental in formulating policies that enable revenue growth, enhance local production, and strengthen the overall economy.”
The committee is expected to reconvene with key stakeholders on this matter to ensure a conducive environment for local industry development, advancing Tanzania’s economic transformation toward a self-sufficient and resilient economy.
