Prices Of Drinks: Gov’t Sets Terms For Readjustment

#Economie

The modifications are prompted by a revision of taxes on wines and liquors

Government has readjusted tariffs of the specific excise duty on wines and liquors with the exception of beers whose price remains unchanged.

The review of tariffs is part of several measures taken to broaden the tax base and modify taxation modalities of certain goods and services for the 2019 financial year in view of optimising revenue collection.

Following the adjustments, the Department of Taxation made public a series of decisions indicating that a tax of FCFA 2 per centilitre would be levied on locally produced wines and spirits while homemade whiskies and champagnes would be taxed at FCFA 8 and FCFA 25 per centilitre respectively. As for imported drinks; wines and spirits of lower class would henceforth be taxed at FCFA 3 whereas whiskies and champagnes of lower class would be levied a tax of FCFA 10 and FCFA 30 respectively.

Imported wines and spirits of higher grade would be levied a tax of FCFA 6 per centilitre whilst whiskies and champagnes of higher grade would be subjected to a tax of FCFA 20 and FCFA 60 per centilitre respectively.

According to a Ministry of Finance circular of instructions relating to the execution of the laws, the monitoring and control of the execution of the budget of the state and other public entities of the 2019 financial year, there shall also be an extension of the scope of specific excise duty on soft drinks, sodas and other imported soft drinks.

Meanwhile, Celestin Tchinde of SOFAVINC, a Cameroonian company producing wines and liquors, told Cameroon Tribune that they of the Cameroon Alcohol Producers Association (CAPA) had in a meeting with the Minister of Trade last month, agreed to hold another gathering after the publication of the circular from the Ministry of Finance.

“It is during this meeting that we will decide how much will be added to the current prices of the drinks in question,” he pointed out.

Sources in the Ministry of Trade and the Taxation Department equally confirmed to Cameroon Tribune that the increase in prices of drinks, induced by the tax adjustments, will only be carried out after the consultative meeting which the Minister of Trade is expected to convene in the days ahead.

Read also : Consumption: Douala Experiences Hikes In Basic Foodstuff Prices