The unintended consequences of the liquor restrictions during this Nationwide Isolation period, will cost some millions of Kina in tax revenue to the government from the country’s leading alcohol beverage producer, SP Brewery.
The company’s Managing Director, Mr. Ed Weggemans, said the channels that will be closed, account for 85% of the projected sales volume in the coming 4 weeks.
“The volume lost would have generated over K17, 080, 644 in Excise Duty and K4, 383, 528 in GST. This loss of K21, 464, 172 is irreversible and will not be recovered when the outlets open again.”
“A further 1.0million Kina in utilities revenue will be lost (Water PNG/PNG Power),” added Mr Weggemans.
Three recommendations were also proposed as means to ease this revenue generation matter.
SP Brewery recommended to allow the takeaway sales of alcohol in all major retail supermarkets only, allow trading to occur between Mondays to Saturday (Closed on Sunday) and all outlets to maintain COVID-19 protocols.
“We strongly believe that a majority of Papua New Guineans are responsible drinkers that want to enjoy a cold beer at the comfort and security of their own homes with family or whilst watching the SP Hunters play during this lockdown period.”