Illicit flows of alcohol pulling down economy – EAZ
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The Economics Association of Zambia (EAZ) has backed Zambian Breweries efforts to stop illicit unregulated alcohol that is denying the nation more than US$100 million in unpaid annual taxes and duties.
The support came as executives from EAZ toured the company’s Mungwi Road plant in Lusaka and discussed, among other issues, the impact of illicit and unregulated alcohol, which has been robbing the nation of its revenue and destroying the morals of citizens, especially youth, who easily access juntaad tujilijili in the communities.
Zambian Breweries Country Director Jose Moran was thankful to EAZ for being one of the associations spearheading a vibrant economy by drawing attention to issues and challenges denying the nation its wealth in taxes.
“Zambian Breweries is a big tax payer and we are here to create wealth for all Zambians, and I believe we are here to stay for a hundred years more,” he said
“We are very hopeful that our relationship with EAZ will help foster a vibrant economy through tackling challenges involving the beer industry, such as illicit alcohol and policies,” he said.
A study conducted in 2017 indicates that about 69 percent of the alcohol on the market is smuggled or illegally produced, which denies the government its share in taxes.
Moran said: “Illicit alcohol is something that we see as a problem as we see it as unethical competition. It is very cheap and very harmful to people. When we go into the communities, we see that a lot of minors consume and abuse this alcohol.”
After touring Zambian Breweries’ Mungwi Plant, EAZ President Dr Lubinda Haabazoka and his executive, expressed happiness with the commitment shown by the brewing company to create a vibrant economy through aligning with the Seventh National Development Plan and Vision 2030 goals.
Dr Haabazoka said: “Illicit alcohol is something government should tackle immediately. We cannot be losing over US$100 million just through illegal brewing and selling of counterfeit and smuggled alcohol. Not only does government lose revenue but it also loses healthy citizens who can contribute to national socio-economic development.”
He pledged that: “As an association we will tighten up and enhance awareness of the illegal trade and production of alcohol so that it is curtailed by the relevant bodies.”
Hence EAZ and Zambian Breweries are working together to bring awareness on the dangers of drinking and trading of smuggled, illicit alcohol.