08 Jul 2015

Kgalagadi Breweries Limited (KBL) has paid government over P760 million per year under the levy on alcohol beverages fund order since the levy was introduced, Assistant Minister of Health, Dr Alfred Madigele has told parliament.

Dr Madigele said the current alcohol levy funds distribution ratio was 85 per cent which goes to a Consolidated Fund, 10 per cent to gender affairs department while ministry of Health receives 5 per cent of the levy funds which was used for alcohol campaign.

Just like all government funds, he said alcohol levy funds in the ministry of Health were accounted for.

The balance of the alcohol levy as at June 2015, he said was over P14 million. 

Further, Dr Madigele noted that alcohol levy funds were channeled through the treasury; collected by Botswana Unified Revenue Services (BURS).

Then, he said they were routed through the Accountant General who then apportions the funds to respective beneficiaries. 

The assistant minister further said he was not aware of the impending retrenchment exercise at KBL or the number of jobs that were on the line. 

He said the alcohol industry had raised major concerns that immediate increases in the alcohol levy affected the operations of beverage manufactures such as the KBL.

To deal with such challenges, Dr Madigele said the two ministries of Health and Trade and Industry had dialogued and continue to meet in order to find best possible solutions. 

He said it was important not to lose sight of the broader purpose for which the levy was established; which was to promote projects and activities designed to combat alcohol abuse and minimise the effects of alcohol abuse in the society. 

Gaborone Central MP, Dr Phenyo Butale had wanted the minister to update parliament on the amount KBL has paid to government under the alcohol levy per year since it was introduced.

He also wanted to know the balance in the levy account.

Dr Butale further wanted to know how the ministry accounts for the funds and why accounts were not channelled through the treasury like other government revenues.

Also, he wanted to know whether, she was aware of the implications or consequences of the implementation of the alcohol levy like the impending retrenchment exercise at KBL, if so how many jobs were on the line. ENDS