Accra Brewery PLC (ABL) has raised concerns over proposed changes to Ghana’s beer excise duty regime, warning that higher taxes on locally manufactured beer could weaken the competitiveness of domestic producers, discourage investment and put up to 2,000 jobs at risk across the sector.
The brewery said the proposed Ghana beer tax changes could have the unintended effect of making imported beer more competitive than beer produced locally.
According to ABL, such a development could undermine investments made by local manufacturers in production facilities, employees, supply chains and local agricultural sourcing.
Accra Brewery Estimates $7.5 Million Impact
Accra Brewery estimates that the proposed excise duty changes could have an impact of approximately $7.5 million on its budget, based on its assumptions for implementation in the 2027 financial year.
The company, however, said the potential impact should not be viewed solely in terms of individual breweries because Ghana’s beer industry supports thousands of jobs and contributes significantly to economic activity.
ABL cited industry data showing that the beer sector supported approximately 52,000 jobs in 2023, representing about 0.4% of total employment. Approximately 98% of those jobs were generated outside brewery operations.
The brewery warned that higher beer taxes could therefore affect workers and businesses throughout the wider beer value chain, including farmers, distributors, retailers, transport and logistics companies, hospitality businesses and other service providers.
Proposed Beer Excise Duty Increase
Under the proposed changes, the excise duty on locally manufactured beer in Ghana would increase from 32.5% to 40%.
For beer produced using high levels of locally sourced materials, including cassava-based beer, the excise duty would rise from 10% to 25%.
Meanwhile, the excise duty on imported beer would remain at 47.5%.
Accra Brewery has urged the government to postpone the proposed increases, arguing that the additional time would allow industry stakeholders to assess the potential impact on manufacturers, consumers, farmers, employment and future investment.
ABL Calls for Review of Ghana Beer Tax Policy
While supporting the government’s efforts to increase domestic revenue, ABL said tax mobilisation should not come at the expense of Ghana’s local manufacturing sector.
The company said the government, industry players and other stakeholders should use the postponement period to develop a predictable and balanced beer excise tax framework that supports revenue generation while protecting domestic production.
ABL also referred to earlier comments by Finance Minister Dr Ato Forson, who indicated that reforms would include a review of the existing sliding-scale excise duty rates for beer and stout.
The objective, according to the brewery, should be to increase government revenue while preserving incentives for local manufacturing and investment.
Imported Beer vs Locally Produced Beer
Accra Brewery stressed the need for Ghana’s tax system to create a level playing field between locally manufactured products and imports.
The company warned that an excise duty structure that makes imported beer more attractive could discourage investment in domestic manufacturing.
ABL is therefore calling on the government to maintain the existing sliding-scale beer excise rates for FY26 and FY27 while further consultations are conducted.
ABL Wants Evidence-Based Assessment
The brewery has called for an evidence-based assessment of the proposed beer tax increases before any new rates are implemented.
According to ABL, such an assessment should consider the potential impact on:
- Local beer manufacturing
- Future investment in Ghana
- The competitiveness of locally produced beer against imports
- Employment and job creation
- Farmers and agricultural supply chains
- Agro-processing businesses
- Government tax revenue
- Consumers and the wider economy
The company believes a balanced and predictable excise duty regime would allow Ghana to increase domestic revenue without undermining industrial development.
Accra Brewery Reaffirms Commitment to Local Production
Accra Brewery said Ghana should not be forced to choose between revenue mobilisation and local industrial growth.
The company reaffirmed its commitment to expanding local production, protecting jobs and supporting farmers, communities and businesses connected to the beer industry.
The debate over the proposed Ghana beer tax increase is expected to remain a key issue for local manufacturers, consumers, farmers and other businesses as the government considers reforms to the country’s excise duty regime.
Source: newsthemegh.com