The Government's plan to realize projected revenues from the recent increase in alcohol taxes could be stymied by the withholding of products by major players in the market.
RJR News understands that since the increased tax took effect on Wednesday, the biggest player in the wines market, Wray and Nephew, has been refusing to sell their products to retailers and wholesalers.
Other players are said to have curtailed product sales as well.
It is believed that Wray and Nephew is furious that they were not consulted before the implementation of the tax which their rivals, Red Stripe, lobbied for.
The company has been in discussions with the Finance Ministry since Wednesday, but is yet to reach an agreement on the matter.
The tax on alcohol was projected to earn the Government $618 million from now until the end of the fiscal year, to help plug an impending hole in the budget.
However, with Wray and Nephew withholding sales until the company concludes consultations with the Finance Minister, it is not yet known how much of that money has been lost.
On average, the increased tax should earn about $5 million per day for the Government's coffers.
RJR News understands that since the increased tax took effect on Wednesday, the biggest player in the wines market, Wray and Nephew, has been refusing to sell their products to retailers and wholesalers.
Other players are said to have curtailed product sales as well.
It is believed that Wray and Nephew is furious that they were not consulted before the implementation of the tax which their rivals, Red Stripe, lobbied for.
The company has been in discussions with the Finance Ministry since Wednesday, but is yet to reach an agreement on the matter.
The tax on alcohol was projected to earn the Government $618 million from now until the end of the fiscal year, to help plug an impending hole in the budget.
However, with Wray and Nephew withholding sales until the company concludes consultations with the Finance Minister, it is not yet known how much of that money has been lost.
On average, the increased tax should earn about $5 million per day for the Government's coffers.
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