Accra Brewery calls for postponement of new excise duty increases

Accra Brewery Limited (ABL) has requested that the government delay the enforcement of recently approved excise duty hikes on locally produced beer. This request was made by Thatokuhle Hlongwa, Country Director of ABL, during a presentation at the Association of Ghana Industries (AGI) 2nd Quarter Business Barometer event and Corporate Forum.

The AGI event gathered government officials, industry leaders, and other stakeholders to discuss issues affecting Ghana’s business landscape. The new excise duty rates would raise locally manufactured beer taxes from 32.5% to 40%, with a more substantial increase to 25% for beer products containing high levels of local raw materials, such as cassava-based beer.

Import beer taxes would remain at 47.5%. Hlongwa explained that these changes could impact production costs, consumer prices, market demand, employment, investment, and the broader value chain, not just the direct taxes paid by manufacturers. He stressed that the brewing industry contributes significantly to Ghana’s economy through local manufacturing, job creation, agriculture, local sourcing, and distribution.

He noted that excise tax changes have broader implications beyond the taxes manufacturers pay, affecting production costs, consumer prices, business volumes, investment decisions, employment levels, and the industry’s overall contribution to national economic growth. Hlongwa made clear that ABL's position is not against taxation or government's revenue goals.

Instead, the company called for a measured, consultative, and sustainable approach that balances revenue generation with economic growth, local manufacturing, employment, investment, agricultural development, and consumer welfare. To support this, ABL requested that the government delay the implementation of the new excise duty measures to allow for more extensive consultations between government and industry.

During this additional time, stakeholders would be able to evaluate the reforms' full impact and develop suitable implementation and business continuity strategies. ABL highlighted three key areas that require attention: further dialogue, additional stakeholder engagement, and postponement of the implementation. The company specifically expressed concern over the sharp increase in excise duty on beer products made from significant local raw materials.

The proposed 10% to 25% increase on cassava-based beer could have consequences for local agricultural producers and businesses within the domestic value chain. ABL reaffirmed its commitment to working constructively with government, AGI, and other stakeholders to find solutions that support Ghana’s economic transformation while preserving jobs, promoting agricultural development, and ensuring sustainable revenue collection.