Vendors and consumers are perplexed, saying the decision is counter-productive.
It doesn’t take the eye of a soothsayer to conclude that business in wine, whisky and champagne is meeting difficulties. Regular buyers of these precious liquors have deserted shops while shop attendants who hitherto had little time off for chats have been sent on forceful break even during hours initially considered as peak periods. The nutshell is that business turnover in wine, whisky and champagne has drastically reduced owing to the fact that prices have increased.
The February 12, 2015 joint statement of the Minister of Trade, Luc Magloire Atangana and of Finance, Alamine Ousmane Mey, recommending increases in the prices of alcoholic drinks with effect from February 16, 2015 has gone operational. The release came after months of speculations on the possible increase in the prices of alcoholic products in accordance with the Finance Law which increases the Minimum Discharge Tax from 1 to 2 per cent.
One week into the effective implementation of the ministerial circular, liquor consumers in Yaounde benefitted from a period of grace declared by vendors but the story is pretty different now. Liquor shops in the Central market, are almost deserted. Ask vendors why and they are quick to recount their frustration, threatening to seal their businesses if the trend continues. Dimko Edwige observed that though her prices are still the same; her business is witnessing a slowdown.
Customers have since the news of the increase in prices stayed away. She blames this on the “excessive increases,” arguing that beer prices witnessed an increase of FCFA 75 for 75 centilitres and questioning why FCFA 300 has been stepped up for same quantities of wine. “The implication is heavy on the economy,” she stressed, underscoring that businesspersons will not be able to pay taxes and employees if the trend continues.
Hervé Mendoua came to the Yaounde Central Market, the heartbeat of the sale of liquor to procure a carton of locally-made wine which formerly sold at FCFA 9,000. He backed out when he observed that the official price has risen to about FCFA 14,000. But the shopkeeper could not help. Prices have increased with a heavy toll on income, regretted Patrick Kenmone. He revealed that FCFA 5,000 has increased on each carton of locally-brewed wine. Well over FCFA 1,000 is the price increment for imported alcoholic drinks. The demand for locally produced alcoholics is high but the trend has pushed consumers to change their choices.
The price list from the General Directorate of Taxation speaks of an additional FCFA 300 on locally produced wine of 75 centilitres, same amount for those of lesser quality and FCFA 2,000 for those considered to be of high quality. Similarly, 75 centilitre locally produced whiskies as well as those of lower quality are expected to witness an increment of FCFA 500 while those of high quality will have FCFA 3,000 added to the usual price. Sachet whisky which hitherto sold at FCFA 150 will hence be given out at FCFA 250, an increase of FCFA 100. Low quality and high quality champagne is now given out at plus FCFA 2,000 and FCFA 4,000 respectively.
