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June 20, 2021
Business Featured News

Higher Tax pushes prices beyond competitive levels

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By Bradley Valenaki

Difficult times for business in PNG and the country’s oldest brewer is feeling the punch.

Despite a global recognition for quality products in 2021, SP Brewery’s export lager and its other products are struggling to sell on the global beverage market.

The Brewery’s Corporate Affairs Manager John Nilkare says PNG is still the main market for its products, adding higher tax from the government pushes prices beyond competitive levels.

SP Brewery Corporate Affairs Manager John Nilkare.

Month long lockdowns means, no revenue for the company as workers are laid off, despite exceptions for restaurants to serve liquor in dine only circumstances.

According to Nilkare “On average the government is losing about K1 Million in excise revenue.”

On the global market, it’s an expensive item struggling to sell, largely due to local tax.

“Our beer is overpriced! our people are paying more than they should and that is because of our local tax regime,” said Nilkare.

He added if the Brewery wants to make their product more affordable, they will have to get government-backed reprieve.

“With affordability comes the opportunity to export.”

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