Audio By Carbonatix
Accra Brewery Limited is considering shutting down its operations over the implementation of the revised Excise Bill, Joy Business has gathered.
The move is expected to depend on President John Mahama’s decision on the bill, which was passed by Parliament earlier this month.
The revised legislation seeks to impose an excise duty of between 7% and 15% on beer produced by local manufacturers, including Accra Brewery.
Joy Business understands that the new tax could result in the company taking a direct impairment hit of about US$7 million.
Sources familiar with the matter say the brewery is assessing the impact of the new tax regime and its implications for the sustainability of its operations.
Joy Business’ engagements with industry players have also confirmed concerns over the potential impact of the revised excise duty on local beverage manufacturers.
Some affected companies are reportedly considering scaling down operations and laying off workers if the new taxes are fully implemented.
Industry players say local beverage producers are already facing intense competition from imported products, which has put pressure on their margins and revenues.
There are also indications that some brewery companies could manage the additional tax burden if its full implementation is deferred until January 2027.
The industry is therefore concerned about the potential impact of the new excise duty on jobs and the wider beverage manufacturing sector.
Joy Business could not independently establish whether the concerns raised by the brewery industry have been formally presented to the Finance Minister, Dr Cassiel Ato Forson.
It is also unclear whether government is considering delaying implementation to allow for further consultations with affected companies.
Latest Stories
-
Kaizen as a strategic pathway for micro business scale-up in Ghana
43 seconds -
Minister orders suspension of Obuasi SHS headmaster over alleged sexual misconduct following JoyNews investigation
5 minutes -
Over 38,000 commercial, 150,000 residential customers unbilled – Ghana Water MD
34 minutes -
Several injured as Sprinter bus collides with ‘trotro’ at Odorkor
34 minutes -
Ghana records progress on reparatory justice agenda – Ablakwa
51 minutes -
Mahama commissions Christian Tetteh Yohuno Ward Complex at Police Hospital
1 hour -
Vice President calls for wider access to Ghana’s political party histories
1 hour -
Republic Bank JoyNews Habitat Fair to connect prospective homeowners with exhibitors in Ho from October 16 to 18
1 hour -
Obaasima Summit: ‘AI is not a spiritual attack’ — Rev. Dr. Ofori-Boateng urges young women to embrace technology
1 hour -
GHS to distribute 80,000 pairs of locally-made protective footwear to health workers
2 hours -
GoldBod boosts local jobs as 90% of gold undergoes refining in Ghana – Sammy Gyamfi
2 hours -
The search for the politically unblemished: Are we asking the impossible of public appointees?
2 hours -
Ghana seeks climate finance access for debt-restructuring countries
2 hours -
Afenyo-Markin urges stronger media scrutiny of public institutions
2 hours -
GoldBod recovers GH¢38.7m in legacy PMMC debts, targets remaining arrears
2 hours