Accra Brewery Limited is considering shutting down its operations following the passage of a revised Excise Bill that introduces a new tax burden on locally produced beer.
The revised legislation, passed by Parliament earlier this month, imposes an excise duty of between 7% and 15% on beer produced by local manufacturers.
The proposed tax is expected to have a significant financial impact on Accra Brewery, with the company reportedly facing a direct impairment hit of about US$7 million.
The brewery is currently assessing the implications of the new tax regime and whether its operations would remain financially sustainable if the revised duty is implemented in full.
Other players in the beverage manufacturing industry are also concerned about the potential impact of the new tax on their businesses. Some companies are reportedly considering scaling down production and reducing their workforce if the new duty takes effect.
Industry players argue that local beverage manufacturers are already under pressure from competition from imported products, which has affected their margins and revenues.
However, some companies may be able to absorb the additional tax burden if implementation is deferred until January 2027. Such a delay, they believe, could provide manufacturers with additional time to adjust their operations and prepare for the new tax regime.
The potential closure or downsizing of breweries has raised concerns about job losses and the broader impact on Ghana’s beverage manufacturing sector.
The final decision on the implementation of the revised Excise Bill will depend on President John Mahama’s position on the legislation.
