Recently, a new scheme for the adjustment of the alcohol consumption tax was officially issued. It is assumed that the beer tax will soon be adjusted accordingly. It is stated in the new survey report by CITIC Securities that, unlike the alcohol consumption tax, the beer tax may increase by 20% to the new 40% tax.
When beer manufacturers were interviewed yesterday they said they had not yet received related information. One financial manager of a famous beer brand in Shanghai said it was possible the beer consumption tax would be adjusted but that it would not be possible to do so in 2009.
Stakeholders in certain imported beer brands believe once the beer consumption tax is raised, popular domestic brands such as Tsingtao and Yanjing Beer which have relatively small profit margins will be influenced disproportionately compared to higher priced imported beer whose profit margins will not be so greatly affected by the increased tax.
Reporters found that in supermarkets like Century Lianhua and Carrefour, beer was being sold at stable prices, with profit margins for the companies around 10-25%。
Read the original in Chinese here
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