December 15, 2006

Irresponsible SenPa allows spirits to be sold without license at fair

"Culture plays a significant role in tourism, and efforts are ongoing to promote its contribution to the trade through the Small Enterprise Promotion Agency (SEnPA)" – Seychelles Nation

At the so-called “culture promotion”, fair organised by SenPA earlier this month, a stall holder was selling 40% proof vodka to anyone for the special knockdown promotion price of SR 40 for a small 375cl plastic bottle. Since when was the production of vodka part of the Seychellois culture? Now it has become a small industry to be officially endorsed by a presidential visit.

The decision to allow the sale of highly intoxicating spirits and other alcohol at officially sponsored fairs and “labrine” remains highly controversial. It also makes a mockery of the law that says anyone under the age of 18 cannot enter a nightclub for the reason that the venue or premises sell alcohol. 

Alcohol has become one of the biggest killers, especially among the young, alongside cardio-vascular diseases and HIV-Aids. Even though it is being fully acknowledged that alcoholism is becoming an epidemic, the government continues to issue licenses for the production of highly intoxicating liquor. In fact, the alcohol itself – which forms the base of the product - is imported and costs very little in foreign currency. But, because it enters the country as a raw material, it attracts a low trade’s tax. All the local “producer” needs to do is dilute it slightly and add flavours and a high mark-up. GST is paid on the factory price not on the shop price.

Imported whisky or other spirits, on the other hand, suffers a high excise duty simply because it arrives as a finished product. Furthermore, the mark-up on imported spirits and alcohol is limited to 18% of landed cost, on top of which  GST at 12% is paid by the importer before the goods leave the port on the controlled selling price, in effect cutting the margin of  profit even further on imported spirits.

In terms of percentage of alcohol per unit of currency, it will cost you R240 if you were drinking beer (4.9% alcohol per volume) to achieve the same level of toxicity from a SR40 plastic bottle of vodka. Many youngsters are consuming the local spirits rather than beer because of its higher alcohol content for its price. This means, unwittingly or wittingly the government is encouraging alcoholism. Care, which seems to have Mrs Sarah Rene as its permanent president, and pretends to be battling alcoholism in the country, seems to ignore this contradiction.

Copyright 2006: Seychelles Weekly, Victoria, Mahe, Seychelles