Accra Brewery Limited is considering shutting down its operations following the implementation of Ghana’s revised excise duty regime, amid concerns that the new tax burden could make its business difficult to sustain.
The revised legislation introduces an excise duty of between 7% and 15% on beer produced by local manufacturers, including Accra Brewery.
The company is currently assessing the financial impact of the changes and what they could mean for its continued operations.
Sources familiar with the situation indicate that the new tax could result in Accra Brewery recording a direct financial impairment of about US$7 million.
The potential loss has raised concerns about the company’s ability to maintain its current level of production and operations.
Industry players have also expressed worries about the wider effects of the revised excise duty on Ghana’s local beverage manufacturing sector.
Some companies are reportedly considering reducing production levels and laying off workers if the new tax measures are fully implemented.
The concerns come at a time when local beverage producers are already facing strong competition from imported products.
According to industry sources, the competition has put pressure on profit margins and revenues, making it increasingly difficult for manufacturers to absorb additional costs.
Excise duty is a tax imposed on selected products, including alcoholic beverages, tobacco and petroleum products. The Ghana Revenue Authority describes it as a tax on the manufacture, sale or consumption of specified goods.
Accra Brewery, which has operated in Ghana for decades, is therefore weighing the implications of the new tax regime as it considers its next steps.
The possible shutdown could have wider economic consequences, particularly for workers, suppliers, distributors and businesses that depend on the brewery’s operations.
