Castel Malawi Limited has disclosed that it could close its operations in the country due to high taxes charged by Malawi Revenue Authority (MRA) on alcoholic beverages.
According to a memo signed by Castel Malawi Limited Managing Director Herve Milhade, MRA is now to be getting 90 percent on production cost as tax.
Milhade said the excise tax charged by MRA is to affect the performance, cash flow and survival of the company.
The Castel boss also disclosed to have been unsuccessful in a meeting with MRA officials to revise the tax that has been charged to the company.
He added that MRA on Monday “garnisheed” Castel Malawi Limited’s accounts.
“These actions by MRA mean that Castel Malawi LTD is at risk of closure and withdrawal of Castel Groupe from the country due to unrealistic and unaffordable excise calculations,” reads part of the memo.
The Castel boss 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.