30 November - 6 December 2000

Liquor and whisky prices to come down in coming weeks

by Franco Aloisio

The decrease in the price of certain alcoholic beverages, announced in last week’s budget speech, has been welcomed by food and beverage operators, importers and sellers.
Lower alcohol prices are expected to hit the market in the coming weeks, when new stocks will start being imported. Despite the fact that the new measures announced in the budget came into effect last week, the present stocks will remain with the same prices.
In his budget speech, Finance Minister Dalli said the prices of certain alcoholic beverages and tobacco will change as a result in a change in the way the excise duty is calculated. The new method, similar to the one adopted in European Union countries, is based on the volume of alcohol in the beverage.
As a result, excise duty on liquors will go down by Lm1.20 per litre, while whisky will decrease by 20c. On the other hand, the price of brandy and vermouth will go up. The excise duty on imported beer will by 1c4 higher, while locally-produced beer will go up by 0c7.
According to Philip Fenech, GRTU’s vice-president and president of the association’s leisure and entertainment sector, the net effect of these changes for bars and restaurant will be that the increase in beer and certain beverage will balance out the reduction in price in liquors and whisky.
“We welcome the reduced prices of liquors and whisky. However, the lowering of the excise duties on these beverages depends entirely on the alcoholic volume. In many cases, the content of alcohol in liquors exceeds 25 per cent. Hence the reduction in price will be less than Lm1.20. The same applies for whisky,” Mr Fenech – himself an owner of a bar in Paceville – said.
On the new price of beer, Mr Fenech said although the increase is marginal, the overall effect for certain operators will be negative – although the reduction in the price of whisky and liquors will make up for the loss.