Accra Brewery warns higher beer taxes could hurt jobs, investment

Accra Brewery Limited has urged the government to delay the implementation of increased excise duty on locally made beer, warning of potential negative impacts on jobs, investment, and various businesses within the brewing value chain. Thatokuhle Hlongwa, the company's Country Director, made this appeal during the Association of Ghana Industries' 2nd Quarter Business Barometer presentation and Corporate Forum in Accra.

Hlongwa emphasized the need for additional consultations to assess the potential effects on manufacturers, consumers, and the economy at large. The government plans to raise excise duty on locally brewed beer from 32.5% to 40%, with a more substantial increase to 25% for beer products heavily reliant on locally sourced raw materials, such as cassava-based beer.

Imported beer, however, will retain its current excise duty rate of 47.5%. Hlongwa explained that these changes could lead to higher production costs, increased consumer prices, and affect demand, investment, and employment in the industry. He stressed that the brewing industry is committed to supporting local manufacturing, agriculture, job creation, procurement, and distribution.

However, ABL cautioned against interpreting their position as opposition to taxation or the government's revenue mobilization efforts. The company stressed the importance of further dialogue and stakeholder engagement to discuss the economic implications of the new rates and to agree on measures that protect investment, employment, local manufacturing, and consumer welfare.