The Food and Beverages Association of Ghana (FABAG) is urging the Ministry of Finance to eliminate the excise tax on fruit juices and sweetened beverages in the upcoming budget, warning that its continued enforcement threatens the survival of local manufacturers.
John Awuni, Chairman of FABAG, recently stated in the public that the excise tax, introduced in 2022 under the Excise Duty (Amendments) Act 2023 (Act 1093), has caused a more than 50 percent decline in sales, severely disrupting working capital and forcing some manufacturers to downsize operations. He described the tax as a crippling burden on the local industry.
“If these taxes are not removed, more businesses could shut down, leading to massive job losses and reduced tax contributions from the sector,” he warned.
Awuni further explained that local manufacturers already bear multiple levies, including import duty, ECOWAS Levy, Exim Levy, and value-added tax (VAT).
These cumulative costs, he noted, have led to labour retrenchment, higher product prices, and an inability to compete with imported alternatives.
FABAG insists that removing the excise tax would relieve domestic beverage producers, allowing for growth and expansion.
The association argues that such a move would boost government revenue through increased sales volumes, job creation, and higher tax contributions—including PAYE, SSNIT payments, withholding taxes, corporate income tax, and VAT.
The group is calling on the government to reassess the long-term impact of the tax on local manufacturing and take immediate action to repeal it in the 2025 budget.
