SABMiller Warns On Impact From Colombia Tax Rise

Brewing giant SABMiller has warned that a planned tax rise on beer in Colombia could have a significant impact on its volumes in the country. On February 1 value-added tax (VAT) on beer is set to rise from 3% to 14%, a move that will increase average beer prices by at least 8%. The move comes just as the Colombian beer market had shown signs of recovery after being hard-hit by an economic downturn. Colombia is SABMiller's second most important market in terms of earnings and the planned tax hike partly explains why its share price has underperformed the FTSE

To read the full article, please choose one of the following options: