According to the Food and Beverage Association of Ghana (FABAG), the 20% tax on beverages would be passed on to customers.
FABAG has been campaigning for the elimination of the 20% workout tax on soft beverages, alcohol, and water.
The Excise Duty Amendment bill, one of three tax laws approved by Parliament in April 2023, levied a 20% tax on sugary drinks and other items.
According to the Association, the taxes would have a significant impact on their enterprises, which are already struggling due to the present economic difficulties.
In an interview with Citi News, FABAG General Secretary Samuel Aggrey stated that the government should look for alternative ways to create income rather than burdening companies.
“It is the government pushing all these prices, and therefore the only option is to pass it on to the consumers. When consumers are burdened with more taxes, they may eventually refuse to buy, disrupting the entire supply chain and posing a challenge of habitual price increases from suppliers.”
In response to the proposed Import Restrictions Bill, FABAG stated that the government should identify initiatives to promote domestic production rather than pursuing an outright ban on the selected commodities.
“We don’t need any legislation to control this; what we need is to figure out how we can grow the local sector. We expect the ministry to present alternative strategies to foster the local sector’s growth. Unfortunately, every collected penny seems to go towards government consumption, leaving the industry still suffering.”
