The Ministry of Finance, Economic Planning and Trade is informing the general public that, the Cabinet of Ministers has approved for the removal of the moratorium on Alcoholic Drinks Production as per the Alcoholic Drinks Act, 2019 (Act 13 of 2019).
This review goes in line with the Government’s regular activity to assess and where necessary review the currently applicable policies and legislative frameworks.
The removal is expected to be effective as at 1st October 2021.
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 moratorium was imposed in 2019.
Speaking to the media on Wednesday 22nd September, the Principal Secretary for Trade, Ms. Cillia Mangroo, explained that a moratorium is not permanent.
“Once a moratorium is imposed, a lot of work is done to relook at the sector, with the aim of removing the moratorium, which usually is for a 2-year period.”
PS Mangroo said that as of next year, the sector will be better regulated and controlled.
“Customs is the entity which regulates the sector, training has been provided for staff working specifically in the unit dealing with the sector, as they have to monitor the percentage of alcohol in the products.”
A new Excise Tax is due to come into force in January 2022, which will provide the controls in place and give more power to Customs to regulate the sector.
At the same time, PS Mangroo said the government also feels the moratorium is ‘unfair.’
“The moratorium is only on local production of alcoholic drinks, whereas the importation of such, is still going on, meaning foreign exchange is going out of the country. When we remove the moratorium, more companies can produce domestically, in a more regulated and controlled environment.”