SABMiller defends tax claims following student protest

The move to ban brands including Grolsch and Peroni followed extensive campaigning from the ActionAid student group, Activista Edinburgh.

ActionAid’s research is reported to show how SABMiller avoids paying millions in tax by shifting profits out of Africa and into tax havens like Switzerland.

However, the brewer has expressed its disappointment at the university’s decision, and rejected all claims made by ActionAid.

Meg Doherty, of Activista Edinburgh, said: “At a time when there is so much economic injustice at home and around the world, this shows that students feel very passionately about this issue. I really hope that this ban will increase the pressure on the company to change the way it does business in developing countries.”

Chris Jordan, ActionAid’s Tax justice campaigner, added: “Edinburgh University students have sent a powerful message to Grolsch owner SABMiller, that tax avoidance by multinational companies is no longer acceptable.”

An SABMiller spokesperson said: “SAB Miller rejects ActionAid’s allegations. We care deeply about development in Africa, for example our business in Mozambique generates 7.2% of Mozambican tax income, whilst in Uganda for every employee in our breweries 247 jobs are created in the broader economy.

“An effective corporate tax rate of 28.2% around the world places SABMiller in the top 25% of the FTSE 100 by this measure.

"Therefore we are extremely disappointed by the decision to ban our products by EUSA. We explained to them, just as we have done to ActionAid, why their allegations are incorrect, and we will continue to do so.”