Beer Tax Plan Could Threaten 2,000 Jobs – ABL

Accra Brewery PLC (ABL) has raised concerns over proposed changes to Ghana’s beer excise duty system, warning that the new measures could increase taxes on locally produced beer and put as many as 2,000 jobs at risk.

The company says the proposed changes could also discourage investment and give imported beer an unintended advantage over products manufactured locally.

ABL argued that local breweries have made significant investments in production facilities, workers, supply networks and agricultural sourcing, which could be affected if the new tax regime makes local production less competitive.

The brewery estimates that the proposed changes could have a financial impact of about $7.5 million on its operations based on its assumptions for implementation in the 2027 financial year.

However, ABL said the potential consequences extend beyond the company, pointing to the wider employment and economic contribution of the beer industry.

According to the company, the beer sector supported approximately 52,000 jobs in 2023, with about 98% of those jobs created outside the breweries themselves.

It warned that changes to the excise structure could therefore affect distributors, retailers, farmers, logistics companies, hospitality businesses and other operators connected to the industry.

ABL acknowledged the government’s need to increase domestic revenue and said it supports efforts to build a sustainable fiscal system.

The company noted that Finance Minister Dr Cassiel Ato Forson had previously indicated that reforms would involve reviewing the existing sliding-scale excise rates applicable to beer and stout, with the aim of raising revenue while maintaining incentives for local manufacturing.

ABL is calling for the existing sliding-scale rates to remain unchanged for the 2026 and 2027 financial years to allow further consultations and an evidence-based assessment of the proposed changes.

The company wants the review to consider the effect of the new rates on local manufacturing, future investment, the competitiveness of locally produced beer against imports, employment, agricultural and agro-processing businesses, and government revenue.

ABL maintained that Ghana can increase domestic revenue without sacrificing industrial development, provided the excise duty system remains balanced and predictable.

The brewery reaffirmed its commitment to local production, job creation and supporting communities and businesses across its supply chain.