4 October 2015
New Zimbabwe Header
Watch what you say, Chamisa warns army
Pact with Mujuru would be betrayal, MDC-T youths
Beitbridge graft scares away tourists, ZTA
Judge orders Zanu PF MP illegal mine shut
Seized snake feared back with owner
Malema accused of plotting Zuma ouster
Churchgoer texts obscenities, fined $100
Devil lover Chinamasa bullied to surrender
Chinamasa reforms win IMF praise
Mawere: Letter to Strive Masiyiwa
Court backs shoplifting Harare model
UK: ZIWA awards to be streamed live
Mashingaidze takes over at Zifa
Post Cuthbert era wont be rosy, FIFA warns
Ncube weekly: Zim’s social safety net
Power retention: Zim’s passport to hell
New churches and human worship
Zimbabwe: Backs to the wall, waiting
Biti raids drinkers, smokers to fund education
15/11/2012 00:00:00
by Staff Reporter
Alcohol prices ... Tendai Biti
Biti commissions $17m Delta plant
Foreign investors target buoyant Delta
Delta profits top US$75 million
Chibuku shakes-up Africa: SABMiller
Dad sues son over drink spree spending
SABMiller's earnings up 46 percent
Cabinet ponders Sunday beer ban
Delta revenues top US$408 million
Mugabe warns on binge drinking
New Bill limits alcohol sale to 3 pints
Beer figures at 1999 levels
SABMiller reinstates Zim results
Zim plans 7PM booze curfew
Ingwebu eyes Namibia expansion
DRINKERS and smokers face Christmas pain after Tendai Biti on Thursday announced a duty rise on alcohol and cigarettes.

The Finance Minister told the House of Assembly that alcohol will be subject to a rise in duty of 5 percent, while the duty on cigarettes went up from US$10 per 1,000 sticks to US$15.

The changes come into effect from December 1.
Biti said he hoped to raise $11 million from the sin tax which would all go towards the education budget.

He told Parliament as he unveiled his 2013 budget: “We have increased excise duty on tobacco and alcohol and this extra increase will be ring-fenced towards the education sector in three areas, namely vocational training and to the two ministries of education both the lower and higher ministries.”

Speaking to New Zimbabwe.com after his budget statement, Biti said “the net effect (of the duty raise) is a US$0.01 increase on a pint of beer” as he sought to pre-empt a backlash from drinkers.

But the increase could be sharper on imported alcohol which was on average priced lower that local brews, Biti said.

“I, therefore, propose to levy a specific rate of excise duty of $0,45 per litre or 45 percent, whichever is higher, in order to level the playing field between imported and locally produced clear beer,” said Minister Biti.

Biti said cigarette levies were being introduced worldwide as governments sought to “mitigate the social costs arising from consumption of hazardous substances”.

Past Finance Ministers, notably Simba Makoni in 2001, were careful to keep drinkers on their side. Makoni’s ‘Drink and Cycle Home’ budget saw him slash excise duty on bicycles and beer.

Biti confirmed drinkers had been left alone since 2004, but now they have to pay a little more for the wise waters.

“The rate has not been reviewed since January 2004, in order to allow ample time for business to re-invest in new plant and equipment,” he said.

“As a result, significant investment in bottling and ancillary plants has been injected since the adoption of the multi-currency regime in February 2009. Volumes of beer sales have, thus, grown by about 270 percent from 2009 to 2012.”

Last week, Education Minister David Coltart accused parents of spending money on beer and mobile phones while neglecting to pay fees for their children.


Biti will hope smokers and drinkers will take the new hit to their budgets in their strides as he stressed that the money raised would all go towards education.

Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book


comments powered by Disqus
Car shipping to Namibia, Zimbabwe, Botswana, Mozambique, South Africa and Zambia from UK
RSS NewsTicker