No room for new taxes in 2026 budget – FABAG tells gov’t

The Food and Beverages Association of Ghana (FABAG) has called on the government to end what it describes as excessive taxation that is crippling the food and beverage industry.

In a statement issued ahead of the 2026 Budget presentation, FABAG said the sector has been struggling under high import duties, rising production costs, unstable exchange rates, inflation, and multiple taxes.

According to the Association, these challenges have placed heavy pressure on manufacturers, importers, and distributors, threatening jobs and making Ghana less attractive to investors.

FABAG is urging the Minister of Finance to use the upcoming budget to reduce or remove nuisance taxes such as the COVID-19 levy, excise duties, the Environmental Excise Tax, and container fumigation fees.

“The cumulative effect of these taxes has raised the cost of doing business, reduced competitiveness, and encouraged the smuggling of cheaper products into the country,” the statement noted.

The Association also warned against introducing any new taxes or levies, insisting that businesses are already overburdened.

“We expect a firm assurance from government that no new taxes will be introduced in 2026,” FABAG said.

Instead, FABAG urged the government to focus on improving tax collection efficiency, broadening the tax base, and supporting local manufacturing. It also called for efforts to stabilise the exchange rate and control inflation.

Additionally, the Association advised the government to streamline overlapping regulatory roles among agencies such as the GRA, FDA, and GSA to reduce bureaucracy and lower business costs.

FABAG reaffirmed its willingness to collaborate with the government to build a stable, growth-driven economy, emphasising that a business-friendly 2026 Budget would help stimulate investment, boost revenue, and improve the welfare of Ghanaians.