In news that will come as a surprise to very few Asia Brewers Network readers, the beer industry is a major contributor to government revenue all around the region.
Oxford Economics, a research firm, has launched a research report – The Global Footprint Of Beer – which analyses the economic impact of the global beer industry on a range of countries, several of them in Asia.
One of the areas of focus of the research was analysing the ‘tax impact’ of the beer industry in 2019 (which they rightly argued as a more realistic start point prior to the COVID’s disruption of production, supply chains and consumption).
The researchers used data from a variety of sources, including four large brewing firms (Anheuser-Busch InBev, Carlsberg Group, Heineken, and Molson Coors Beverage Company) and government statistics collections.
The results show the tax revenues from beer is largest in China, South Korea and India, though the beer industry still pays over a billion dollars in taxes in Vietnam and Malaysia.
When analysing the impact of beer industry taxes on overall government revenue, however, a more nuanced picture occurs.
From a high of 9.2% of government revenue in Cambodia to a relative low of 0.3% in Indonesia, the brewing industry’s tax impact is critical to state budgets throughout Asia-Pacific.
How much does the beer industry contribute to tax revenue in your country? Find out below and explore the full research microsite here.
* For the full methodology behind the calculations of beer’s tax impact in Asia , check out the Global Footprint Of Beer report linked above.
