The government has rejected Accra Brewery PLC’s concerns over Ghana’s revised beer and stout excise-duty regime, insisting that the new rates are necessary to protect public revenue while ensuring tax concessions genuinely support local production.

The response follows a recent publication by Accra Brewery warning that the new excise structure could undermine local manufacturing, discourage investment and put up to 2,000 jobs across the beer value chain at risk.

The company also estimated a potential impact of US$7.5 million on its budget and called for the existing rates to be frozen for FY26 and FY27.

However, government says the brewery’s arguments fail to address the main reason behind the review, whether manufacturers benefiting from the concession are actually meeting the local raw material requirements attached to it.

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Under the revised Excise Act, the sliding scale has been retained. Beer containing more than 70% local raw materials will attract a 25% excise rate, while products with 50% to 70% local content will attract 40%. Beer with less than 50% local content remains at 47.5%, the same standard rate applicable to imports.

Government argues that this means local producers still enjoy a substantial advantage over imported beer, contrary to ABL’s claim that the new regime could favour imports.

The government further says data from the Ghana Revenue Authority show about 85% of qualifying domestic beer production has been assessed in the highest concessionary band, raising questions about whether the incentive is still functioning as intended.

It estimates revenue foregone under the sliding scale at GH¢1.75 billion between 2023 and 2025.

Government has therefore challenged ABL to provide verifiable data on its local raw-material purchases, farmers and aggregators, employment figures, the US$7.5 million calculation and the alleged competitiveness disadvantage.

It says it remains open to evidence-based consultation but will not suspend rates already enacted by Parliament based solely on unsubstantiated claims.

FKA

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