Brewers protest 25 percent duty on glass bottle

Alcoholic drink brewers, already smarting from suppressed demand linked to the Covid-19 containment measures, face a fresh shock as excise duty looms on glass bottles.

Brewers have joined hands with other glass bottle users to protest the 25 percent excise tax introduced through the Business Laws (Amendment) Act, 2020, saying it will be punitive since the industry relies heavily on imports.

In a memorandum presented to the Departmental Committee on Finance and National Planning chaired by Kipkelion East MP Joseph Limo, the glass users comprising the Kenya Breweries Limited (KBL), Coca-Cola beverages Africa, UDV Kenya Limited, Kenya Wines Agency Limited (KWAL) and Trufoods Limited have asked that the excise duty be removed for being counterproductive.

The manufacturers want the First Schedule to the Excise Duty Act amended by deleting the proposed 25 percent excise duty on imported glass “because local glass making companies do not have the capacity to serve increased orders”.

“They lack modern glass technology, which prevents them from switching from one type of glass to the next efficiently and the protection of glass manufacturing companies in Kenya violates the principle of equity and fairness in the taxation of excisable goods.