GABORONE, July 31, 2008 (AFP) - Botswana's government will next month raise alcohol prices by 70 percent in a bid to curb alcoholism, the office of the newly elected President Ian Khama said Thursday.
"The levy will commence on August 18 and be used for educating the public on the dangers of alcohol abuse, rehabilitation programmes for victims of alcohol abuse and other good causes," said a statement from the president's office.
The new tax comes two years after the government of the landlocked southern African country introduced trading curfews for bars, bottle stores and night clubs.
President Khama delivered the latest blow after a series of public meetings around the country where he added that if the 70 percent levy did not prove fruitful, a 100 per cent increase will be considered.
Botswana has one of Africa's highest HIV prevalence rates, with surging alcohol consumption blamed in part.
Botswana brewer, Kgalagadi Beverages, a subsidiary of SAB Miller, criticised the government's decision as "very unfortunate and a major disappointment."
"It is further disheartening that Government has unilaterally targeted a single industry with this huge development, without providing any notice, let alone consultation with the industry," said KBL director of corporate affairs and strategy, Thapelo Letsholo.
The decision was slammed by the Botswana opposition party congress who described it as not addressing the root cause of alcoholism in the country.
"Imposing a 70 percent levy is a sledge-hammer approach that fails to take into account the complexity of consumption and trade in alcohol," said Diphetogo Maswabi.
"The message to potential foreign investors is not encouraging as this development could be viewed as a precedent," said Maswabi.
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