Accra Brewery Limited (ABL) has called on the government to postpone the implementation of newly approved increases in excise duty on locally manufactured beer, arguing that further consultations are needed to assess the potential impact on businesses, consumers and the wider economy.
The appeal was made by ABL Country Director, Thatokuhle Hlongwa, at the Association of Ghana Industries (AGI) 2nd Quarter Business Barometer presentation and Corporate Forum in Accra.
The forum brought together government officials, industry leaders and other stakeholders to discuss developments shaping Ghana’s business environment.
Under the approved reforms, the excise duty on locally manufactured beer is expected to rise from 32.5% to 40%, while beer products with high local raw material content, including cassava-based beer, will see a sharper increase from 10% to 25%.
The excise duty on imported beer, however, will remain unchanged at 47.5%.
Mr. Hlongwa said the proposed increases could have implications beyond the taxes paid directly by manufacturers, potentially raising production costs and consumer prices while affecting demand, investment, employment and businesses across the value chain.
He stressed that the brewing industry contributes significantly to the economy through local manufacturing, job creation, agricultural linkages, local procurement and distribution.
According to him, ABL has also invested heavily in local manufacturing capacity, domestic sourcing and value-chain development.
“Changes to the excise taxation have implications that extend far beyond the taxes paid by the manufacturers. Such changes affect production costs, consumer prices, business volumes, investment decisions, employment levels, and ultimately the industry’s contribution to national economic growth,” he said.
Mr. Hlongwa emphasised that the company’s concerns should not be interpreted as opposition to taxation or government’s revenue mobilisation efforts.
“Our opinion is not against taxation, nor is it opposed to government’s legitimate objective of mobilising revenue for national development,” he said.
Instead, he called for a measured and consultative approach that balances revenue mobilisation with economic growth, local manufacturing, employment, investment, agricultural development and consumer welfare.
ABL is therefore urging government to defer implementation of the new excise duty measures to allow for further engagement with industry.
Mr. Hlongwa said the additional time would enable government and industry stakeholders to assess the full economic impact of the reforms and develop appropriate implementation and business continuity measures.
“We are not against taxation. Absolutely not. But what we are doing is, let’s have a further dialogue, a further stakeholder engagement, give us the opportunity to dialogue further,” he said.
He identified three key areas requiring attention: further dialogue, additional stakeholder engagement and postponement of implementation.
Concern over local raw materials
ABL is particularly concerned about the proposed increase in excise duty on beer products that use significant quantities of locally sourced raw materials.
The increase from 10% to 25% on cassava-based beer, the company argues, could have implications for farmers, agricultural producers and businesses operating within the domestic value chain.
Mr. Hlongwa said policies affecting the brewing industry should take into account its contribution to agriculture, local procurement, employment and domestic value addition.
ABL has reaffirmed its commitment to engaging constructively with government, the AGI and other stakeholders to find solutions that support Ghana’s economic transformation while protecting jobs and investment, promoting agricultural development and ensuring sustainable revenue mobilisation.
SOURCE: CITI NEWSROOM
