Beer makers want State to take a sober view on taxes

MPs Tuesday met beer manufacturers with a view to entice them to invest in cheap drinks for the low-income earners. The House Committee of Finance, Planning and Trade and officials of the three firms held a two-hour meeting at Parliament Building in Nairobi.

Senior managers of Keroche Industries, London Distillers and the Kenya Wine Agencies Limited told the committee that the low-income market was lucrative, only that the pricing made the drinks out of reach for the common man.

"They told us that up to 60 per cent of the price goes toward paying taxes," said committee chairman Benjamin Langat.

The thrust of the firms' argument was that if the taxes went down, then they can produce drinks for the low-income earners who mostly consume unhygienic and untested illicit brew and alcohol which lead to deaths.

Langat, who is also the MP for Ainamoi, said the Government's priority was to raise revenue, but also the well-being of the citizens has to be taken on board.

"It is true we need the money to run this country, but should we pursue the money at the expense of the lives of the people?" posed Langat. "If we lower taxes, they will sell the drinks cheaply and we'll still collect more because they will sell more".

The MPs did not give an assurance to the beer manufacturers on the way forward, but if they sit and discuss the issue, they will have to amend some of the laws to lower taxes. The laws on the cards is the Finance Bill and other individual tax laws.

"We just got their views. We will sit down and see how best to help them make money, but also keep our people safe as well as how the Government will also meet its revenue targets," said Langat. The largest beer maker in the region, East Africa Breweries, had already met the lawmakers.