Accra Brewery may shut down operations over revised excise duty

Accra Brewery Limited is contemplating winding down its operations due to the introduction of the revised Excise Bill, according to Joy Business. The decision will hinge on President John Mahama's stance on the bill, which was recently approved by Parliament. The legislation aims to impose an excise duty ranging from 7% to 15% on beer produced by local manufacturers, including Accra Brewery.

Industry insiders estimate that the new tax could lead to a US$7 million impairment for the company. Reports suggest that the brewery is evaluating the effects of the new tax regime and its potential impact on the sustainability of its operations. Concerns have been expressed by industry players regarding the potential ramifications of the revised excise duty on local beverage manufacturers.

Some affected companies are contemplating reducing operations and terminating employment if the new taxes are fully enforced. The industry is also worried about the impact of the duty on job security and the overall beverage manufacturing sector. It remains uncertain whether the concerns voiced by the brewery industry have been formally communicated to the Finance Minister, Dr. Cassiel Ato Forson.

Additionally, it is unclear if the government is contemplating a delay in implementation to facilitate additional consultations with impacted companies.