As from October 1, 2021 any Seychellois who wants to invest in the business of making alcohol or artisanal alcohol – beer – can apply for a license to do so.

This follows the removal of the moratorium on Alcoholic Drinks Production as per the Alcoholic Drinks Act, 2019 (Act 13 of 2019) by the cabinet of ministers and announced by the Ministry of Finance, Economic Planning and Trade.

This review goes in line with the government’s regular activity to assess and where necessary review the current applicable policies and legislative frameworks.

Principal secretary for trade, Cillia Mangroo, met with the press yesterday to enlighten us on this subject.

“It was in 2019, in his state of the nation address that then President Danny Faure, after analysing the effect of alcohol on the families, put several propositions to control the alcohol use, one of which was the moratorium on the issuance of licenses for alcohol production. As part of the continuous reviews by the government, the moratorium has been removed. As from October 1, 2021, we will now be accepting, on condition that they meet all the requirements of the Seychelles Licensing Authority, Seychelles Bureau of Standards and Customs, new applications for manufacturing of alcohol beverages,” explained Ms Mangroo.

So far, only one investor has approached the department of trade for such a venture.

But why this decision then?

Ms Mangroo noted that a moratorium is imposed for a period of time and has to be reviewed by the authorities. “This decision is mainly to encourage locals to start a business along that line and make it a niche market for tourists or even for exports. The department of trade has been working hard to classify the variety of alcohol and beers as there was abuse in the taxes. Also we are making sure that all products are being properly labelled. According to the Seychelles Licensing Authority, there are currently eight companies licenced to produce alcohol in the country,” said Ms Mangroo.

Excise Tax on alcohol

Alcopops: Alcopops having alcohol strength exceeding 0.5% but not exceeding 16% volume – Previous excise tax R24.5.

Percentage (%) increase proposed/ policy decision for Alcopops having alcohol strength exceeding 0.5% but not exceeding 8% volume. 10% + All alcopops above 8% vol now classified as a spirit, (classified according to the spirit which it is made from), or as a liquor depending on its content. Both have significantly higher excise tax; ranging from R66/l up to R268.4/l. The current excise tax (as of February 2020) is R26.95.

Beer made from malt: Previous excise tax was R20.98 for beer. For beer having an alcoholic strength not exceeding 8%, there is a 10% increase (as per previous Cabinet approval) and is R23.08.

Beer having an alcoholic strength exceeding 8% but not exceeding 16%: There is a proposed 10% increase of the new lower excise tax (23.08+2.308) and the current excise tax as of February 2020 is R25.11.

Beer having an alcoholic strength exceeding 16%: There is a proposed 10% incremental (25.11+2.51) and the current excise tax as of February 2020 is R27.62.

Stout: Previous tax was R15.15 for stout having an alcoholic strength not exceeding 8%. 10% (as per previous Cabinet approval) and the current excise tax as of February 2020 is R16.67.

Stout having an alcoholic strength exceeding 8% but not exceeding 16%- there was a proposal of 10% of the new lower excise tax (16.67+ 1.667) and the current excise tax as of February 2020 is R18.34.

Stout having an alcoholic strength exceeding 16%- there was a proposal of 10% incremental increase (18.34+1.834) and the current excise tax as of February 2020 is R20.17.

“It is to be noted that the manufacturing of alcohol continues to be regulated by the provisions of the Excise Tax Act, in order to ensure that set standards are adhered to and applicable tax liabilities are paid accordingly. The new law soon to be brought in will reinforce the checks already done on incoming alcoholic products. Right now, government is not yet thinking of increasing the price of alcohol,” concluded Ms Mangroo.

Source: Seychelles Nation