The anticipated increase on excise tax has led to beer crates shortage at breweries due to sellers hoarding the products, Capital learned.
The revised excise tax is expected to be ratified by the parliament in the near future.
One of the sectors that will be affected by the revised excise tax, which is also known as a sin tax levied mostly on luxury goods and items dangerous to people’s health is the alcohol industry. For instance, for the current budget year the Ministry of Revenue plans to collect 45.4 percent higher excise tax from breweries compared with the preceding year.
The government targets to amass 4.246 billion birr from the brewers in the budget year which is a 1.3 billion birr increase compared with the 2018/19 fiscal year.
Sources at different breweries told Capital that most of them are affected by the shortage of crates (bottle box).
Sources said that currently there is high demand of products in the market but the factories can’t meet their demands because the crates are being returned more slowly than before.
Sources said that sellers in the country on average have a capacity of 1,000 glasses holding, while they seem to be now hoarding more products in their warehouses.
Businesspeople say sellers are holding on to the products a long time before they sell them. When the revised tax law is ratified the price of beer is expected to shoot up. “The distributers are waiting for the law to be ratified, which will bring a huge wind fall sum to their pocket,” they said. They further said that the distributors’ action has forced brewers to slow down their daily production.
The beer industry actors said that some of the brewers are trying their best to get their crates back by applying different tactics.
“For instance, one of the brewers started to give additional bonus crate of beer for those who come up with 15 empty crates,” sources said.
The excise tax, which is expected to contribute about 9 percent of the total tax collection this year, is the oldest tax in modern Ethiopia’s history, first introduced in 1931, before the Italian occupation, on excisable products such as alcoholic beverages, cigarettes, incense, carpets and clothes.
The highly anticipated law is expected to be ratified by the parliament by the coming month, while as the original plan the proclamation was expected to be applicable in November; but it was delayed so far.
As per the draft document Capital was able to look at it appears that taxes on some goods will change and that new products will become eligible for the excise tax but details are not mentioned. Previously an excise tax ranging from 10 to 100 percent was applied to 19 categories of products.
The government is encouraged by international partners like the World Bank and International Monetary Fund to improve tax collection from the current 10 percent of the GDP ratio to at least up to peer countries in the region. In the Sub Sahara region, the average tax to GDP ratio is about 18 percent.
Beer hoarding spikes before excise tax ratification
Prosperity Party launches
Even though the Tigrayan People’s Liberation Front (TPLF) excluded itself, from the congress of the ruling coalition Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF) unanimously agreed to form a single party called Prosperity Party.
The merger issue was frequently raised by party members including top leaders and veterans but it had not become a reality until now.
The collation in the past two congresses also agreed to come up with researched documents to conclude the merger, while the recent congress decision has come to fruition and now the ruling coalition that is under massive democracy, human rights and economic reforms since Abiy Ahmed came to power has agreed to conclude the long-foreseen plan for the formation of a single party.
Besides the merger of the four parties that includes Amhara Democratic Party, the Oromo Democratic Party (ODP) and the Southern Ethiopian People’s Democratic Movement. The congress has also agreed to add other satellite parties made up from other regions that were previously out of the coalition.
However, TPLF, whose party members including seniors raised the merger issue in different time in their congress, has neglected itself from the congress.
The coalition has been in power since Derg removed from power in 1991 it has been claimed that TPLF has been influential and its party leader, Meles Zenawi, has been on the top of the group until his death in 2012.
Even though he was replaced by the chairperson of the Southern Ethiopian People’s Democratic Movement, Hailemariam Desalegn, political commentators argued that TPLF had the most power in the coalition until Abiy came to the power in April last year.
Since TPLF lost its influence its relation with other parties, relations mainly with Amhara Democratic Party was fragile.
PSYCHOPATHS AND POLITICIANS
Humanity must come to terms with the consequences of all rounded psychopathic governance, political, economic, etc. History teaches us it is predominantly the demented members of our species that have always caused wars, conflicts and general discord within the human family. Of course, there are always pretexts and excuses to justify all the wrong doings caused by the power-crazed sickos. Always hungry for power and privileges, these individuals manipulate the unsuspecting sheeple (human mass) to secure positions of responsibilities, so that they can do their grabbing as well as exercise their extreme megalomaniac intentions over the majority of peaceful humanity! These individuals have been instrumental in creating chaos and repeated destructions of civilizations since time immemorial!
Why is the global sheeple willing to tolerate such repetitive and malicious destructions? It is only recently that medical science and psychiatry advanced enough to help us understand the origins, nature and execution of evil. Currently, a whole lot of research is being conducted in the field of psychiatry and neurology to deepen knowledge on ‘ponerology’. Ponerology is the new science that attempts to study the nature of evil. It all started in the 1930s in the countries of the former East Europe, including USSR. Some of the dissidents within the socialist world experienced, first hand, systemic evil unleashed by the apparatchiks. Later on, Nazi Germany embarked on a more broader and sophisticated practice of institutionalized evil. This led researchers, who themselves became victims of these regimes, to begin the systematic study of evil. To this day, the discipline is not encouraged by many of the dominant establishment institutions as well the states. The reason; new findings have potential implications with far reaching consequences. The global status quo is worried! Here is an observation by one of the foremost researcher in the field; ‘Psychopaths are social predators, and like all predators, they are looking for feeding grounds. Wherever you get power, prestige and money, you will find them.’ Robert D. Hare. Nonetheless, progress in research is being made on a daily basis, throwing light on the widespread evil that permeates organized societies!
The latest findings put the number of psychopaths in a given country roughly between 5 to 10% of the general population. Amongst these, some are bona fide clinical psychopaths. In other words, these individuals should be put in mental institutions. By and large, psychopaths cannot be cured from their affliction, at least not with the technology that is available today. What a society can do to avoid the dangerous behaviors of chronic psychopaths is to make sure these individuals do not get involved in anything that matter. Their lack of judgment, balance, empathy, conscience and their obsessive greed and entitlement with no remorse, makes them anti-social, to say the least. Unfortunately, our world system, geared by individuals with psychopathic tendencies, considers psychopathic behavior as something positive, instead of antisocial! There should be no illusion here. For the most part, the world is and has been run or led by mediocre megalomanias, rather than the most capable and fair. Armed with new and continuous knowledge, it is hoped the situation will change for the better!
With the current level of technology, humanity can now identify the psychopaths amongst us. Therefore, it is time to seriously consider eliminating psychopaths from all major societal undertakings. For instance, since it is the politicos that are handling all global governance, in one form or another, they should first be cleared of psychopathic affliction before they can occupy public offices. By not doing so, humanity will keep on exposing itself to even more calamities, as we are now living in the more dangerous universe of the techno-sphere! Here is an instructive historical example. Today many people in Germany are more skeptical of demagogues as compared to other rich nations. They seem to prefer more levelheaded/balanced politicians to that of firebrand warmongers. This is mostly because of their painful experience of the 1930s!
Robert Lindner reminds us; ‘it is characteristic of all movements and crusades that the psychopathic elements rises to the top.’ Beware; “Psychopathic individuals have a neurobiologic impairment in the ability to recognize and process fear and sadness in the facial expressions or voices of other people. It’s as though they’re blind and deaf to the pain of those around them.” Jordan Smoller (The Other Side of Normal: How Biology Is Providing the Clues to Unlock the Secrets of Normal and Abnormal Behavior.) Good Day!
Global Business Forum Africa 2019 concludes with call to bolster UAE-African economic ties
The Global Business Forum Africa (GBF Africa 2019) in Dubai concluded on November 19th with a call from African and UAE government and business leaders to bolster bilateral economic ties and capitalise on new business opportunities emerging across the continent.
More than 2,500 delegates from 76 countries attended the fifth edition of GBF Africa, including presidents of Liberia and Zimbabwe, the prime ministers of Mozambique and Uganda, as well as ministers, policymakers and prominent businessmen, who shared their insights on Africa’s evolving economic landscape.
A total of 350 bilateral business meetings were held on the sidelines of the two-day forum, marking a 75 percent increase compared to the previous edition. Sessions during the event covered a wide range of key issues and trends impacting African economies, including the shift towards regional integration following the launch of the African Continental Free Trade Area (AfCFTA), advanced technologies reshaping the government and business spheres and the role of startups and cross-border cooperation in driving the continent’s next phase of growth.
GBF Africa 2019 was organised by Dubai Chamber of Commerce and Industry under the theme Scale-Up Africa, building on its legacy as the most important event of its kind in the region which aims to nurture and expand UAE-Africa trade links.
Hamad Buamim, President & CEO of Dubai Chamber, said: “The fifth edition of GBF Africa exceeded our expectations and achieved its objectives, while the forum saw a 67 percent increase in attendance compared to the previous edition, reflecting growing confidence in Dubai as a preferred hub for African companies.”
He noted that Dubai Chamber is preparing to host the largest and most comprehensive GBF Africa to date at Expo 2020 Dubai, adding that the next edition of the forum will offer an ideal platform for African businesses to boost their global profile and explore new growth opportunities.
UAE has potential to double exports to Africa: analysis
There is tremendous potential for the UAE to double its exports to African countries with plastics, rubber and sugar identified as the top products offering the most untapped export potential estimated at $867.9 million, $457.9 million and $291.7 million, respectively.
The analysis, based on recent data from the International Trade Center (ITC), relies on an economic model using supply and demand data, along with ease of trade indicators to determine the untapped export potential for a selected exporting country in the chosen target market.
The UAE’s exports to African countries have recorded strong growth over the past decade, supported by a number of key trends and factors such as expanding UAE-Africa trade links, Dubai’s ongoing efforts to enhance its position as a gateway to African markets and improving economic conditions across the continent.
Top UAE exports to Africa
The findings indicate that the UAE’s exports of certain products, such as electrical devices, machinery, and vehicles, have exceeded their export potential to the African continent, which is an indicator of the development of trade links between UAE exporters and African markets. However, it points out that the UAE is still developing its “hub status” for the export of the majority of other products.
Top UAE exports to African markets in 2017 by value were plastics and rubber ($925.3 million) metal products ($407.7 million), other metal products ($267.8 million), sugar ($190.2 million), beauty products and perfumes ($165.7 million), and jewelry and precious metal articles ($161.7 million).
High-potential African markets
The top African markets offering the most untapped potential to import plastics and rubber products from the UAE include: Kenya (estimated untapped potential of $88.2 million), Egypt ($81.3 million), Nigeria ($73.3 million), Tanzania ($ 63.6 million) and Ethiopia ($35.5 million).
Somalia ($91.8 million), Sudan ($66.7 million), Libya ($49.8 million), Djibouti ($35.7 million) and Egypt ($29.3 million) were identified as high-potential African markets where the UAE can boost its exports of sugar.
In the category of metal products, the analysis suggested that UAE exports to Egypt could potentially be increased to $34 million), followed by Ethiopia ($26.6 million), Libya ($24.5 million), Angola ($23.6 million) and Senegal ($10.9 million).
