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The Association of Ghana Industries (AGI) has called on the government to remove the 20% excise tax on locally produced sweetened beverages and fruit juices, arguing that its elimination will boost production, protect jobs, and support the 24-hour economy programme.
In a formal appeal to the Minister of Finance, Dr. Cassiel Ato Forson, the AGI stressed that tax rationalisation under the new 24-hour economy initiative would allow local beverage manufacturers to return to full production capacity and beyond.
The excise tax, introduced in 2023 under the Amendment Act 2023 (Act 1093), has had a devastating effect on Ghana’s fruit juice and sweetened beverage industry. According to the AGI:
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- Some companies have lost over 50% of their sales since the tax was implemented.
- Production capacity in the sector has dropped from 85% to just 38%.
- Mass layoffs have occurred, as companies struggle to stay afloat.
- Imported products have flooded the market, undermining local manufacturers.
Among the companies most affected by the tax are Ekumfi Fruits and Juices Limited, Healthlife Beverages Limited, Kasapreko Limited, and Aquafresh Limited. These businesses face rising costs, shrinking market share, and multiple tax burdens, making it difficult for them to compete against imports.
The AGI warns that if the excise tax is not removed, the local beverage sector could collapse, leading to:
- Further job losses in factories and across supply chains.
- Reduced local raw material demand, affecting farmers and suppliers.
- A weakened manufacturing base, contradicting Ghana’s goal of industrial expansion.
The association argues that eliminating the tax would stimulate economic activity, allowing factories to hire more workers, invest in production, and contribute significantly to the 24-hour economy vision.
The Ghana Federation of Labour (GFL) has also appealed to the government, stating that the tax is crippling the local beverage industry. The GFL believes that keeping the tax in place could push more businesses to shut down, further weakening job security for thousands of workers.
Both the AGI and the GFL urge the government to take immediate action, ensuring that Ghanaian manufacturers remain competitive while fostering sustainable industrial growth.
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