Accra Brewery Limited (ABL) has appealed to government to postpone the implementation of the newly approved excise duty increases on locally manufactured beer, calling for further stakeholder consultations to assess the potential impact on businesses, consumers and the wider economy.

The call was made by Thatokuhle Hlongwa, Country Director of ABL, during the Association of Ghana Industries (AGI) 2nd Quarter Business Barometer presentation and Corporate Forum.

The event brought together government officials, industry leaders and other stakeholders to discuss developments affecting Ghana's business environment.

Under the approved reforms, excise duty on locally manufactured beer is expected to increase from 32.5% to 40%, while the rate on beer products with high local raw material content, including cassava-based beer, will increase significantly from 10% to 25%.

Meanwhile, the excise duty applicable to imported beer products will remain unchanged at 47.5%.

Mr. Hlongwa said the proposed changes could have implications beyond the taxes directly paid by manufacturers, potentially affecting production costs, consumer prices, market demand, employment, investment and the broader value chain.

He stressed that the brewing industry plays an important role in Ghana's economy through local manufacturing, employment creation, agricultural linkages, local procurement and distribution.

According to him, the industry has also made significant investments in local manufacturing capacity, local sourcing and value-chain development across the country.

“Changes to the excise taxation have implications that extend far beyond the taxes paid by the manufacturers. Such changes affect production costs, consumer prices, business volumes, investment decisions, employment levels, and ultimately the industry's contribution to national economic growth,” he said.

Mr. Hlongwa, however, emphasised that Accra Brewery's position should not be interpreted as opposition to taxation.

“Our opinion is not against taxation, nor is it opposed to government's legitimate objective of mobilising revenue for national development,” he said.

Instead, he called for what he described as a measured, consultative and sustainable approach that balances revenue mobilisation with economic growth, local manufacturing, employment, investment, agricultural development and consumer welfare.

Call for postponement

Accra Brewery is therefore asking government to postpone the implementation of the approved excise duty measures to allow for further consultations between government and industry.

Mr. Hlongwa said the additional time would enable stakeholders to assess the full impact of the reforms and develop appropriate implementation and business continuity measures.

“We are not against taxation. Absolutely not. But what we are doing is, let's have a further dialogue, a further stakeholder engagement, give us the opportunity to dialogue further,” he said.

He identified three key areas requiring attention: further dialogue, additional stakeholder engagement and the postponement of implementation.

Concern over local raw materials

The company is particularly concerned about the sharp increase in excise duty on beer products using high levels of local raw materials.

The proposed increase from 10% to 25% on cassava-based beer, it argues, could have implications for local agricultural producers and businesses within the domestic value chain.

Accra Brewery said policies affecting the brewing sector must take into consideration the industry's contribution to agriculture, local procurement, employment and domestic value addition.

The company reaffirmed its commitment to constructive engagement with government, the AGI and other stakeholders to find solutions that support Ghana's economic transformation while protecting jobs and investment, promoting agricultural development and ensuring sustainable revenue mobilisation.