Proposed beer tax changes could put 2,000 jobs at risk – ABL

Accra Brewery PLC (ABL) has warned that proposed changes to Ghana’s beer excise duty regime could increase the tax burden on locally produced beer, undermine investment and put up to 2,000 jobs across the beer value chain at risk.

The brewery said the revised regime could create an unintended advantage for imported beer over locally manufactured products, despite the significant investments local producers have made in factories, employees, supply chains, and agricultural sourcing.

For ABL, the potential impact on its budget is estimated at $7.5 million based on assumptions for implementation in FY27.

The company said the implications, however, extend beyond its own operations, citing the wider economic contribution of the beer industry.

The beer sector, ABL noted, supported 52,000 jobs in 2023, equivalent to 0.4% of total employment, with around 98% of these jobs fostered beyond breweries.

ABL said the proposed changes could therefore affect workers and businesses across the wider value chain, including distributors, retailers, farmers, logistics providers, hospitality businesses and other enterprises linked to the beer industry.

The brewery acknowledged the government’s need to strengthen domestic revenue mobilisation and said it supported efforts to create a sustainable fiscal environment.

It said the Minister of Finance, Dr Ato Forson, had previously indicated that reforms would include a review of existing sliding-scale excise rates for beer and stout, to increase government revenue while preserving incentives for local production.

“A tax framework should not inadvertently make importing a product more attractive than manufacturing that same product locally,” ABL said.

The company is calling for the existing beer sliding-scale rates to remain unchanged for FY26 and FY27 to allow government and industry stakeholders more time to conduct an evidence-based review.

It said such consultations should assess the impact of the proposed rates on local manufacturing and future investment, the competitiveness of locally produced beer against imports, employment, agricultural and agro-processing linkages, and government revenue objectives.

ABL said Ghana could pursue revenue mobilisation without undermining industrial growth if the excise framework remained balanced and predictable.

“Ghana should not have to choose between revenue mobilisation and local industrial growth,” the company said, adding that it remained committed to investing in local production, supporting jobs and contributing to communities and value chains.

CitiNewsRoom