Dealers in spirits eye local brew

By Vision reporter

Finance minister Maria Kiwanuka doubled the taxes on imported spirits by 140%, which has shocked many bar owners.

Imported spirits like Bond 7 and V&A cost sh20,000 in the suburbs of Banda and Kireka and only a few individuals can afford it.

The bar owners say the tax increase on imported spirits will force them to abandon spirits in large quantity.

Others said they would only concentrate on selling local brew, arguing that after all even before Government planned to increase the tax, the demand had fallen.

“I sell Bond 7 and V&A, but if more taxes are levied on them, I will be forced to sell them at sh35,000 from sh20,000. But starting next month, I am going to reduce the quantity I stock. I believe few consumers will be able to partake of the spirits at the new prices. And with time, if the demand goes down, I will abandon buying them,” said Harriet Nalwoga, the owner of Spring Bar, Banda.

Samson Kireka Kamya, a manager of Riverside Bar in Kireka said: “The demand for the spirits is very low. My biggest customers are civil servants, but themajority of them cannot afford spirits. These days, some drink beer on credit.”

At Kamya’s bar, some customers were heard saying after the budget reading that they would resort to local tot-pack spirits.

However, other customers, drinking in the bar welcomed the Government’s decision, saying levying more taxes on imported spirits, would increase the demand for local brew.

“Those who are engaged in local production should have a reason to smile. They are going to increase their production, since those who have been consuming imported spirits, will resort to local brews,” said Allan Asiimwe, a trader in Kikuubo.