Tax Reform Key to Unlocking Growth, Say Breweries

Zambia’s Breweries sector has called for a reduction in excise taxes on beer, to unlock significant economic growth, support small-scale farmers and boost government revenues.

In July 2025, Government increased the excise tax on clear beer from a 40% suspension to a direct 50% tax and raised the duty on spirits and wines from 60% to 80% to finance a K33.6 billion supplementary budget.

Representing industry players, Zambia Breweries Country Director, Thais Cavinatto warned that recent increases in excise tax are straining the sector, shrinking the formal market, and encouraging illicit trade.

In an op-ed released today, Cavinatto pointed to previous periods of lower taxation that led to industry expansion and increased tax revenues.

“When excise tax rates were previously set at sustainable levels, the industry expanded, formal sales grew, and government revenues increased year-on-year. Today, reverting to those earlier excise rates would deliver the same effect: stabilizing the market, safeguarding thousands of direct and indirect jobs, and protecting the incomes of smallholder farmers who supply the industry.”

“Lower, predictable taxation would also strengthen Zambia’s regional competitiveness. Breweries would have more capacity to invest in innovation, expand distribution, and capture export opportunities in neighbouring markets,” Cavinatto noted.

She observed that for government, this would mean not only healthier tax collections from a growing formal industry, but also stronger progress toward national development goals.

Cavinatto highlighted the beer sector’s vital role in Zambia’s economy, from sourcing crops like barley, cassava and maize from rural farmers to supporting jobs across retail, hospitality, and logistics.

She also emphasized opportunities presented by Zambia’s economic shifts, including the revival of mining, expansion of trade routes like the Lobito Corridor, and growth in hospitality and retail.

“When the beer industry grows, Zambia grows. But that growth depends on the right policy environment,” she noted.

Cavinatto stressed the need for policymakers to ensure that regulation supports investment, trade, and infrastructure.

She further urged collaboration among government, business, and communities to ensure the industry continues to contribute to national development.

“The choice is clear: we can nurture an industry that delivers prosperity from farms to towns to export corridors, or risk undermining its potential. The time to act is now,” Cavinatto added.