Rev. John Awuni
The Meals and Drinks Affiliation of Ghana (FABAG) has made a robust attraction to the federal government to take away the ‘excise tax on fruit juices, arguing that its imposition has severely affected the native business and hindered financial progress.
In a press launch dated February 16, 2025, Rev. John Awuni, the Govt Chairman of FABAG, referred to as on the Minister of Finance and the federal government to handle the difficulty within the upcoming finances.
The affiliation believes that eradicating this tax, together with different “nuisance taxes,” would assist stimulate home manufacturing and considerably enhance income mobilization by the Ghana Income Authority (GRA).
“The introduction and imposition of the obnoxious EXCISE tax on sweetened and fruit drinks underneath Excise Responsibility (Amendments) Act 2023 (Act 1093) particularly on domestically produced fruit juices and sweetened drinks has had a devastating adverse impact on native manufacturing with a multiplier impact on employment ranges, gross sales turnover, working capital and worldwide market competitiveness of Ghanaian fruit juices and sweetened beverage”, the assertion stated
In accordance with FABAG, the native business already faces a heavy tax burden, together with Import Responsibility, VAT, Ecowas Levy, and a number of different taxes, making it troublesome for producers to outlive.
This overwhelming tax load has led to retrenchment of employees, increased manufacturing prices, and an lack of ability to compete with imported merchandise.
The affiliation burdened that reversing the Excise Tax wouldn’t solely relieve the struggling sector but additionally promote progress and sustainability.
He argued that eradicating the tax may result in elevated gross sales, extra jobs, and better tax contributions, together with PAYE, company taxes, and VAT.
FABAG alluded remained dedicated to supporting the federal government’s targets and hopes for a good choice within the first finances assertion.
In conclusion, FABAG referred to as on the federal government to indicate understanding of the present challenges dealing with the fruit juice manufacturing business and act swiftly to reverse the excise tax for the sake of financial restoration and job creation.
“This pressing request from FABAG underscores the affiliation’s dedication to making sure that the home meals and beverage business thrives within the face of mounting challenges”.
The Excise Tax, launched underneath the Excise Responsibility (Amendments) Act 2023 (Act 1093), it concluded has negatively impacted the manufacturing of domestically made fruit juices and sweetened drinks, leading to a drop in gross sales by greater than 50%.
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