Excise duty cut excites Chibuku
Chibuku Products Limited (CPL) has revealed plans to reopen its Mangochi factory and increase production following reduction of excise tax on opaque beer from 30 percent to 10 percent.
Representatives of the company further indicate that they have rescinded their decision to retrench 30 percent of staff as earlier planned.
This came out following a visit by Minister of Industry Roy Kachale to the company’s factory in Blantyre.
CPL Operations Manager Werlam Sitima said the company has also effected a 16 percent cut in prices of its products in strategic markets but will soon be effected nationwide.
“We were about to retrench employees but we will keep them. We have reduced Chibuku Shake Shake price to K350 and Chibuku Super 1.25 liters has been reduced to K500 from K600,” Sitima said.
Kachale said he was happy to see government measures aimed at resuscitating the economy, bearing fruits.
He said, apart from fiscal measures, they have also intensified efforts to reduce smuggling of goods into the country.
“There is a ministerial taskforce which is looking at dealing with the challenge of porous borders. We are reporting directly to the Head of State and, soon, we will find a lasting solution,” Kachale said.
The company has been complaining of continued illegal importation of opaque beer which claimed over 50 percent of its market share in some markets in the Central Region.
CPL produces alcoholic and non-alcoholic beverages.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.