Accra Brewery Limited (ABL) has urged the government to delay the implementation of newly approved increases in excise duty on locally manufactured beer, warning that the measures could affect jobs, investment and businesses across the brewing value chain.

The company’s Country Director, Thatokuhle Hlongwa, made the call during the Association of Ghana Industries (AGI) 2nd Quarter Business Barometer presentation and Corporate Forum in Accra.

He said additional consultations were needed to properly assess the likely impact of the new rates on manufacturers, consumers and the wider economy.

Under the approved reforms, excise duty on locally manufactured beer is expected to increase from 32.5% to 40%, while beer products with high local raw material content, including cassava-based beer, will see a sharper rise from 10% to 25%. The rate on imported beer, however, will remain at 47.5%.

Mr Hlongwa said the changes could increase production costs and consumer prices while affecting demand, investment and employment.

“Changes to the excise taxation have implications that extend far beyond the taxes paid by the manufacturers,” he said, adding that the brewing industry supports local manufacturing, agriculture, job creation, procurement and distribution.

He stressed that ABL’s position should not be interpreted as opposition to taxation or the government’s revenue mobilisation agenda.

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

ABL is particularly concerned about the proposed increase on beer products made with significant quantities of locally sourced raw materials, arguing that the rise from 10% to 25% could affect farmers and businesses within the domestic agricultural value chain.

Mr Hlongwa therefore called for further dialogue, broader stakeholder engagement and a postponement of the implementation of the new rates to allow Government and industry to assess their economic implications and agree on measures that protect investment, employment, local manufacturing and consumer welfare.