10 Jun 2018

Parliament has learnt that  over P2.8 million has been collected since the inception of the alcohol levy as of December last year.

Updating Parliament on the alcohol levy, Assistant Minister of Health and Wellness, Mr Biggie Butale stated that the levy was introduced in November 2008 at 30 per cent and now stands at 55 per cent.

Mr Butale highlighted that the management of the alcohol levy fund was guided by the levy on alcoholic beverages fund order 2010.

The alcohol levy funds, he said were managed by his ministry from July 2010 when the then Ministry of Trade and Industry transferred over P133 million to the ministry.

He noted that health ministry only received 10 per cent of the alcohol levy funds for the anti alcohol campaign while the other 10 per cent goes to the Ministry of Nationality, Immigration and Gender and the remaining 80 per cent goes to the Government Consolidated Funds.

"As at February 2018 my ministry had received over P1 billion in alcohol levy. Other government  beneficiaries include Ministry of Youth, Sport and Culture Development, Ministry of Education, Botswana Police, Botswana National Sports Council, Office of the President and Ministry of Local Government and Rural Development,”said Mr Butale.

He indicated that part of the levy channelled to his ministry had been used to rehabilitate the Serowe and Jubilee hospital infrastructures.

He further stated that over P42 million had by far been used to assist some Non-governmental Organisations as per the request from such entities.

He said even though there were no official figures as yet, government was of the position that the introduction of the levy had addressed alcohol abuse.

When responding to the assistant minister’s update, Specially Elected Member of Parliament, Mr Mephato Reatile decried the impact of the alcohol levy on Kgalagadi Breweries Limited (KBL).

He said the introduction of the levy had negative social and economic impact on KBL as the decline in sales and profitability had led to loss of jobs due to the fact that the brewery closed some of its operations in the country and was currently importing some of its beverages.

Member of Parliament for Gabane/Mmankgodi, Major General Pius Mokgware pleaded with the assistant minister to frequently audit the fund in order to prevent any misuse and ensure accountability and transparency.

Maj. Gen. Mokgware also requested an explanation on whether there was any clause that stipulated the percentage share per beneficiary of the levy fund.

Gaborone Central legislator, Dr Phenyo Butale advised that it was high time government reviewed the impact of the levy on the country’s economy and fully assessed if it had accomplished its primary mandate.

Dr Butale is also of the view that the increase in the alcohol levy had  contributed to illegal cross-border smuggling of alcohol and the increase in the sale of potentially harmful illicit drugs as those who cannot afford alcohol have now resorted to drugs.

In his response, Mr Butale stated that government would soon set up a nationwide task force to get views from Batswana regarding the alcohol levy.  

He said government followed the fund order to fully utilise the revenue collected from the levy to empower Batswana.

Mr Butale urged Batswana to work with law enforcement officials to guard against smuggling of alcohol from neighbouring countries. ENDS