BURS tax collections from KBL declined by P200m due to alcohol ban

Combined, BURS and Water Utilities Corporation (WUC) collected P620, 432,173 in 2020 compared to P842, 678, 575 in 2019.

BURS tax collections from KBL declined by P200m due to alcohol ban
GABORONE 9 February 2021, Delivery truckes are parked at Kgalagadi Breweries Limited (KBL) warehouse in Gaborone on 9 February 2021. Alcohol producer and distributor KBL, has suspended operations following alcohol ban by government to help fight COVID-19 pandemic in the country. Some believe that banning alcohol may cause job loss in the long run. (Pic:Monirul Bhuiyan/Press Photo)

Revenue collected by two government parastatals from Kgalagadi Breweries Limited (KBL) decline by a quarter of a billion owing to alcohol trading restrictions, figures provided by government show.

Combined, BURS and Water Utilities Corporation (WUC) collected P620, 432,173 in 2020 compared to P842, 678, 575 in 2019. This represents a 26 percent decline of collections. BURS alone collected P605, 766, 315 compared to P823, 405, 556. WUC collected P14, 665, 858 in 2020 compared to P19, 273, 019 the previous period.

Elsewhere, KBL spent P2, 047, 682 on Morupule Coal Mine Limited in 2020. This is a decline compared to P2, 673, 939 in 2019. KBL dropped supplier payments by P295, 348, 305 or 27 percent versus 2019.  Local supplier base decreased by 18 percent, from 469 (2019) to 384 (2020), which means 85 local companies were unfortunately cut from the value chain.

Total spend by the brewer fell by P227, 219, 679. This includes spend on marketing, production materials, services, maintenances. KBL lost about P880 million in total as a results of trading restrictions.

According to the Ministry of trade, KBL believes the following could be done to revive the industry: consistency to produce and trade - adopt a balanced and sustainable approach that curbs the spread of the disease and simultaneously allows industry to trade with restrictions, in order to protect the lives and livelihoods of those in the industry and its extensive value chain. Further strict enforcement of measures against noncompliant outlets and consumers is crucial. KBL also proposed deferment of payment of taxes (levy, excise and VAT).

KBL spent approximately P5.5 million to assist Government’s Covid – 19 response efforts. KBL donated 24,000 litres of hand sanitizer worth P1.5 million, P825, 000 vouchers to employees of 1650 alcohol retail outlets and 10,000 face shields worth P123, 000; where 6,400 shields were given to the Ministries of Health and Wellness and Nationality, Immigration and Gender Affairs.  KBL also donated P1.5 million’s worth of Covid-19 compliance kits for alcohol retail outlets, which included hand sanitizer, face masks, social distancing stickers and demarcation tape.

Additionally KBL executed an education and awareness campaign worth approximately P1.6 million and 65,000-liter capacity water bowser to the Water Utilities Corporation for use in areas with limited water supply.