[2008-09-02]  Brewers Hope for the Best in Alcohol Levy

The managing director of Sechaba Breweries Holdings Limited, Lehlohonolo Matsela hopes the government will not introduce the controversial 70 percent levy on liquor. The levy is meant to control excessive alcohol consumption and was supposed to take effect mid this month but was postponed after Sechaba Breweries and stakeholders, with the help of BOCCIM, pleaded with government. Sechaba owns Botswana Breweries and Kgalagadi Breweries. Opponents of the levy told government that they needed more time to consult and come up with alternatives to address the problems associated with excessive alcohol consumption. At a shareholders meeting yesterday at the Coca-Cola plant in Gaborone, Matsela said if the levy is imposed, as suggested by government, it will affect not only Sechaba but all the parties in the liquor industry. He said the industry employs many people and the levy would result in job losses. He added that the attempt to control alcohol consumption will lead to drug abuse. He said people will switch to stronger alcohol to get drunk quickly and this will not be good for their health.Matsela said if the levy is introduced, it will add another 5.7% to inflation, which has already been affected by the food price hikes. In the document Sechaba submitted to government recently, after the announcement of the 70% levy, Matsela said they suggested measures, which could be used to punish those who abuse alcohol. These include revoking driving licenses of those found drunks while driving at the same time. He said this has worked in some countries where alcohol consumption is higher than Botswana.” Everybody caught violating the law concerning drinking and driving, should face stringent penalties," he said. Matsela gave the example of United States where proof of age is required when one is buying alcohol. "And this has worked effectively in those countries and this is the route we have suggested to government. This is the way we should be taking instead of coming up with levies," he said.Matsela did not want to predict how the government will handle the matter. However, he said they are waiting to submit the findings of a consultation of stakeholders to government.



Source: BDAFRICA