Accra: The government has dismissed Accra Brewery PLC's concerns over Ghana's revised beer and stout excise-duty regime, maintaining that the new rates are essential to protect public revenue while ensuring that tax concessions effectively support local production.
According to Ghana Web, the government's response follows a recent publication by Accra Brewery warning that the new excise structure could undermine local manufacturing, discourage investment, and jeopardize up to 2,000 jobs across the beer value chain. The company estimated a potential budget impact of US$7.5 million and called for the existing rates to be frozen for the fiscal years 2026 and 2027.
However, the government contends that the brewery's arguments fail to address the primary reason for the review, questioning whether manufacturers benefiting from the concession are genuinely meeting the local raw material requirements attached to it. Under the revised Excise Act, a sliding scale has been retained, with beer containing more than 70% local raw materials attracting a 25% excise rate, while products with 50% to 70% local content face a 40% rate. Beer with less than 50% local content remains at 47.5%, the same rate applicable to imports.
The government argues that this structure means local producers still enjoy a significant advantage over imported beer, countering ABL's claim that the new regime could favor imports. Furthermore, data from the Ghana Revenue Authority indicates that 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. The government estimates revenue foregone under the sliding scale at GHS1.75 billion between 2023 and 2025.
In response, the government has 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 emphasizes that while it remains open to evidence-based consultation, it will not suspend rates already enacted by Parliament based solely on unsubstantiated claims.