The Ghana Federation of Labour (GFL) has formally petitioned the Ministry of Trade, Agribusiness & Industry to address the damaging effects of excise duties on the fruit juice and sweetened beverage industry in the country.

In a letter dated January 22, 2025, the GFL outlined the severe challenges faced by the industry, describing the taxes as “debilitating” and “politically motivated.”

The Excise Duty (Amendment) Act 2023 (Act 1093), which imposed additional taxes on sweetened and fruit-based beverages, has reportedly placed immense strain on businesses in this sector.

According to the GFL, the increased production and sales costs have made the industry less competitive, resulting in job losses and redundancies.

Over the past eight years, the Federation has consistently urged successive governments to reverse these tax policies, but their efforts have yet to produce results.

The GFL argues that the current tax regime is based on “unfounded arguments” and does not align with the Ministry of Health’s policy on dietary health.

Furthermore, the Federation stated that the claims used to justify the taxes could not be substantiated by Ghana’s Food and Drug Authority.

The Federation expressed serious concerns about the financial viability of businesses operating under the current tax conditions, pointing out that many companies in the fruit juice and sweetened beverage industry are on the brink of collapse due to rising production costs and reduced consumer purchasing power.

The GFL labelled the tax as an “obnoxious” measure, emphasising that its impact undermines the economic and employment stability of the nation.

The GFL’s plea highlights the urgency of creating a conducive environment for local industries. In their letter, the Federation called on the government to reconsider its position and engage in meaningful dialogue to address these pressing issues.

They argued that reversing the excise duties would not only revitalise the struggling sector but also safeguard thousands of jobs and boost economic growth.

Read also: Scrap 20% excise tax on sweetened beverages to support 24-hour economy, AGI urges gov’t

The Ghana Federation of Labour has brought to light an issue that affects not only businesses but also the livelihoods of employees and their families. With the sector on the verge of collapse, stakeholders will be closely watching the government’s response to this appeal.