Accra Brewery calls for postponement of new excise duty increases

Accra Brewery Limited has urged the government to delay the introduction of upcoming excise duty hikes on locally brewed beer, requesting additional discussions with stakeholders to evaluate the potential effects on businesses, consumers, and the economy overall. Thatokuhle Hlongwa, the country director of ABL, raised this concern during the Association of Ghana Industries' recent Business Barometer presentation and Corporate Forum.

The forum included government representatives, industry leaders, and other relevant parties to discuss issues impacting Ghana's business landscape.

Under the approved changes, the excise duty on locally produced beer will rise from 32.5% to 40%, while the duty on beer products with substantial local raw material content, such as cassava-based beer, will increase from 10% to 25%. Import beer duties, however, will remain at 47.5%.

Hlongwa warned that these proposed adjustments could have broader repercussions, influencing production costs, consumer prices, market demand, employment, investment, and the overall value chain. He emphasized that the brewing sector makes significant contributions to Ghana's economy through manufacturing, job creation, agricultural ties, local procurement, and distribution. Moreover, the industry has invested heavily in local manufacturing, sourcing, and value-chain development throughout the nation.

Hlongwa clarified that Accra Brewery's stance is not against taxation or government's objective of generating revenue for national development. Instead, the company advocates for a balanced, consultative, and sustainable approach that considers revenue generation alongside economic growth, local manufacturing, employment, investment, agricultural development, and consumer welfare.

The brewery company specifically expressed concerns about the substantial rise in excise duty on beer products made with high levels of local raw materials, particularly cassava-based beer. They argue that this significant increase from 10% to 25% could negatively impact local agricultural producers and businesses within the domestic value chain.

Accra Brewery stressed that any policies affecting the brewing industry should account for its contribution to agriculture, local procurement, employment, and domestic value addition. The company reaffirmed its dedication to working with government, AGI, and other stakeholders to achieve solutions that promote Ghana's economic growth while safeguarding jobs, investment, agricultural development, and sustainable revenue generation.