Cedi recovery feels empty without tax cuts – Food and Beverage Association

Executive Secretary of the Food and Beverage Association, Sam Aggrey, says the recent appreciation of the cedi is not making a real difference for businesses.

He stressed that without tax relief, the impact remains minimal.

“Despite the cedi gaining strength, businesses aren’t feeling the benefits. The losses we suffered when the cedi fell from ¢3.80 to over ¢16 were massive. Many businesses are still struggling to recover from that,” he said.

Mr Aggrey explained that while the cedi’s recovery is welcome, it doesn’t erase the damage already done and it comes with its own cost.

“It’s like getting hit twice. First, we lost so much during the depreciation. Now, even with the appreciation, we’re still paying for it without any real support.”

He emphasised that without government intervention, especially in the form of tax cuts and port reliefs, the stronger cedi won’t translate into business growth.

“You can’t expect the private sector to thrive when import duties and taxes are so high. There are nearly 21 different taxes on a single imported item. That’s simply unsustainable.”

He criticised previous policy decisions that worsened the cedi’s fall, particularly the full recovery of benchmark values and increased port levies, arguing they triggered higher import costs and discouraged investment.

“We warned the Finance Minister at the time that pushing for 100% benchmark recovery would hurt the economy. He didn’t listen. The cedi started to slide even further, and businesses paid the price.”

He concluded with a strong call for a complete overhaul of the tax regime to give businesses the relief they desperately need.

“Until government reviews its policies and reduces the tax burden, the appreciation of the cedi will remain just a number not a benefit for everyday businesses.”