AGI urges Government to scrap 20% excise tax on sweetened beverages

The Association of Ghana Industries (AGI) is urging the government to reconsider and revoke the 20% excise tax imposed on locally manufactured sweetened beverages and fruit juices.

AGI argues that removing this tax would align with the government’s vision for a 24-hour economy by allowing beverage producers to expand, boost production, and generate more employment opportunities. 

The association maintains that tax adjustments within this framework would enable juice manufacturers to restore and even surpass their previous production levels.

According to AGI, the excise tax, introduced in 2023 through the Amendment Act 2023 (Act 1093), has had a severe impact on the industry. Since its implementation, some companies have reported a sales decline of over 50%, while production capacity utilization has plummeted from approximately 85% to 38%.

In an official communication to the newly appointed Minister of Finance, Dr. Cassiel Ato Forson, AGI emphasized that the tax has led to widespread job losses and made it difficult for local producers to compete with imported beverages, which now dominate the market. Companies such as Ekumfi Fruits and Juices Limited, Healthlife Beverages Limited, Kasapreko Limited, and Aquafresh Limited have been particularly affected, struggling with high costs, reduced output, and multiple tax burdens.

AGI warns that if these challenges remain unaddressed, the beverage manufacturing sector could face a major downturn, jeopardizing the objectives of the 24-hour economy initiative.

Echoing these concerns, the Ghana Federation of Labour has also appealed to the government to reassess the excise tax, cautioning that it is putting the local beverage production industry at risk.