Players in the food and beverage industry are advocating for a reversal of the three new taxes that took effect on May 1, 2023.
The Income Tax Amendment, Excise Duty and Excise Tax Stamp Amendment, and Growth and Sustainability taxes have been implemented, much to the disappointment of the business community.
Concerns are being raised by traders, manufacturers, retailers, and other stakeholders in the value chain, who fear that the new tariffs will worsen production challenges and lead to significant job losses.
John Awuni, Executive Director of the Food and Beverage Association of Ghana (FABAG), spoke to Citi Business News and expressed hope that the Finance Minister would withdraw these taxes during the mid-year budget presentation.
“We are expecting that we can still engage with the government if it makes itself available. We have made so many appeals to parliament and the executive, and it appears no one is minding us, but we remain hopeful. In the mid-year budget, they should be able to reverse those three new taxes,” Awuni said.
He further criticized the Growth and Sustainability levy, stating, “The Growth and Sustainability levy, for example, is extortion. It is absolutely unacceptable, and it is going to affect the ordinary Ghanaian. So we will speak to the government as partners in development to ensure that they withdraw these taxes because they are odd.”
The Excise Duty Amendment Bill imposes a 20 per cent tax on sweetened beverages and other products such as processed fruit juice, cigars, mineral water, spirits, wines, and sparkling wine.
The Income Tax Amendment Act introduces a minimum of 5% tax on firms that declare losses for five years. Individuals earning income beyond ¢500 will also be subject to taxes, and the higher one's income, the more taxes they will pay to the state.
Under the Growth and Sustainability Levy Act, banks, non-bank financial institutions, telecom companies, and firms in the oil sector are required to pay 5% of their profit before tax to the state.
However, traders argue that the introduction of these new taxes will further escalate the cost of doing business.
Some beverage and bottled water sellers have accused certain wholesalers of deliberately creating artificial shortages of products as a means of adjusting prices to reflect the new tax measures.
Customers are expressing opposition to the increased prices of products following the implementation of the taxes.