The management of Castel Malawi Limited, producers of alcoholic and non-alcoholic beverages has threatened to close its business in Malawi due to high excise tax rate imposed on the company.
This has been disclosed in a memo released by Castel Managing Director Halve Milhade on Monday 17, 2019 made available to faceofmalawi reporter.
Milhade said the companyâs efforts to negotiate with Malawi Revenue Authority (MRA) on the need for tax exemption has yielded no results hence the company is considering closing shop as it is struggling to sustain the business.
âThese actions by MRA mean that Castel Malawi LTD is at risk of closure and withdrawal of Castel Group from the country due to unrealistic and unaffordable excise calculations,â reads part of the memo.
In the meomo, Milhade admitted that the company over the past years it has struggled to maintain business profitability due to the continued decline in sales volumes.
He however assured employees that the company will put in every effort to turn things around and save their jobs.
French Groupe Castel bought the brewery from Danish company Carlsberg in 2016. Carlsberg was established in Malawi in 1968.
Follow Us on Instagram