Accra Brewery may shut down operations over revised excise duty

Accra Brewery may be forced to cease operations due to the introduction of the revised Excise Bill, according to preliminary reports. The decision hinges on President John Mahama's stance on the legislation, which was recently approved by Parliament. This new legislation introduces an excise duty ranging from 7% to 15% on beer produced by local manufacturers, including Accra Brewery.

Industry insiders indicate that this tax could lead to a direct financial loss of approximately US$7 million for the company. They are currently evaluating the potential impact of the new tax regime on their operations' viability. Other manufacturers in the sector are reportedly contemplating reducing their operations or dismissing employees if the new taxes are fully implemented.

Local beverage producers are already grappling with stiff competition from imported products, which has strained their profitability. It is also suggested that some brewery companies might be able to cope with the extra tax burden if its full effect is postponed until January 2027. The industry is thus apprehensive about the possible repercussions of the new excise duty, particularly on employment and the broader beverage manufacturing industry.

It remains uncertain whether these concerns have been formally communicated to the Finance Minister, Dr Cassiel Ato Forson, or if the government is contemplating a delay in the implementation to accommodate further discussions with affected companies.