While some bars are respecting the FCFA 75 increase per bottle, others have gone beyond this, depending on the comfort they offer their customers.
Beer consumers in Cameroon have for some days now been spending more to obtain the same quantity, but this has in no way reduced their appetite for what many consider as a precious liquid.
In accordance with the 2015 Finance Law, which increases the minimum discharge tax from 1 per cent to 2 per cent, beer parlours have stepped up the price per bottle so as to break-even.
Sequel to February 12, 2015 joint communiqué of the Ministries of Trade and Finance, prices of beer have witnessed increases since February 16. However, brewery companies hold that the FCFA 75 is void of taxes. Hence, prices practised in beer parlours are far from what is required by government.
Cameroon Tribune observed on February 18, 2015 that the amount charged per bottle depends on the drinking spot. While some bars respect to the letter the amount of FCFA 75 added by government, some have stepped it up by FCFA 100. Others are even charging more on the pretext that the comfort they offer customers needs to be compensated for by the sale of drinks. This is to obey the business rule of always seeking to maximise profits.
Accordingly, 65 centilitres of beer, which is supposed to witness a FCFA 75 increase, now costs an average FCFA 600 up from FCFA 500 per bottle. A crate is sold at FCFA 6,600; up from FCFA 5,400.
A 33 centilitre-bottle in the same line is being sold at FCFA 37.5 increment. Brasseries du Cameroun has however published its new price list indicating increments of FCFA 100 on each of its big size beers, FCFA 50 for small sizes and FCFA 100 for mixed alcoholics.
The argument however stands that the prices proposed by government were void of taxes. The brewery company has taxed FCFA 9, FCFA 4.5 and FCFA 9 as minimum discharge tax for big size, small size and 50 centilitre Booster drinks respectively.
An additional FCFA 16, FCFA 8 and FCFA 16 is for the value added tax for the same quantity of drinks. Guinness Cameroon’s has not changed its wholesale prices and such readjustments will be made public, said Christian Pout, Corporate Relations Director, Diageo West and Central Africa. But retailers are already selling at the readjusted price.
To ease their work, some bartenders now prefer round figures to avoid the headache of looking for change and the not-so-favourable clashes that go with looking for it.
“How much is a bottle of big Guinness?” a customer quizzed and the response was quick. She answered that big-size Guinness now sells at FCFA 1,100, up from FCFA 1,000.
But when the customer questioned why the hike was FCFA 100 instead of FCFA 75 as required by government, the bartender explained that their figures were rounded up. This, according to her, was to spare them the time of looking for change.
But when another customer proposed an additional FCFA 75 to the old price, the response was negative. “We have set our prices at plus FCFA 100 and they are not subject to modification,” the bartender explained.
