Accra Brewery may shut down operations over revised excise duty

Accra Brewery Limited is contemplating the possibility of closing its operations due to the introduction of a revised Excise Bill, according to Joy Business. The decision hinges on President John Mahama's stance on the bill, which was recently approved by Parliament. The updated legislation aims to levy an excise duty ranging from 7% to 15% on beer produced domestically, including by Accra Brewery.

The new tax is anticipated to result in a financial impairment of around US$7 million for the company. Industry insiders are assessing the ramifications of the new tax framework and its potential effect on the brewery's viability. Concurrently, discussions with other companies within the sector have revealed apprehensions about the repercussions of the revised excise duty on the viability of local beverage manufacturers.

Some of these firms are contemplating reducing their operations and reducing their workforce if the new taxes are enacted in their entirety. The local beverage producers are already contending with fierce competition from imported goods, which has strained their profit margins and revenues. Moreover, there is a possibility that certain brewery companies could cope with the extra tax burden if the full implementation of the new duty is postponed until January 2027.

Consequently, the industry is worried about the potential fallout from the new excise duty on employment and the broader beverage manufacturing sector. It remains uncertain whether the brewery industry has officially communicated its concerns to the Finance Minister, Dr. Cassiel Ato Forson. Additionally, there is ambiguity regarding whether the government is contemplating a delay in the implementation to provide additional consultations with the impacted companies.