Zero-alcohol beers to be taxed in 2020

The Excise Department has announced that it will tax non-alcoholic beers next year in an effort to prevent new drinkers. According to the Public Health Ministry, consumers regard the non-alcoholic drinks as an alternative to other drinks as they are considerably cheaper due to the lack of tax.

The makers are also able to distribute samples at educational institutes as they are labelled as non-alcoholic.

The department has now completed the HS code and tax rate for the 0-per-cent beers, which will be taxed at more than 14 per cent (regular drinks) but at less than 22 per cent (beer containing alcohol). The draft proposal will now be submitted to the cabinet for approval. The draft includes other products related to alcoholic drink such as beer tablets.

The director claimed that the tax rate will not affect the retail price since the 0-per-cent alcohol beers are being sold for almost the same price as ordinary beers but without the high taxes.

The Nation

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