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Mozambique Cuts Tax on Cassava Beer to Encourage Production

Mozambique’s parliament has approved legislation that will cut the tax on beer made from cassava to 10 percent compared with 40 percent for beer made from malt to encourage the use of locally grown crops.

“The 10 percent value represents a preferential tax, encouraging the entry of locally produced cassava beers in the national market, with the intention of valuing this raw material and encouraging new processes that promote using local resources,” Finance Minister Manuel Chang said in an e-mailed statement today.

Cervejas de Mocambique, a unit of London-based SABMiller, said in the statement that it will start producing the beer soon.

27 Oct. 2011

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