The Ghana Federation of Labour (GFL) has formally petitioned the Ministry of Commerce, Agribusiness & Business to handle the damaging results of excise duties on the fruit juice and sweetened beverage trade within the nation.
In a letter dated January 22, 2025, the GFL outlined the extreme challenges confronted by the trade, describing the taxes as “debilitating” and “politically motivated.”
The Excise Responsibility (Modification) Act 2023 (Act 1093), which imposed further taxes on sweetened and fruit-based drinks, has reportedly positioned immense pressure on companies on this sector.
In line with the GFL, the elevated manufacturing and gross sales prices have made the trade much less aggressive, leading to job losses and redundancies.
Over the previous eight years, the Federation has constantly urged successive governments to reverse these tax insurance policies, however their efforts have but to supply outcomes.
The GFL argues that the present tax regime relies on “unfounded arguments” and doesn’t align with the Ministry of Well being’s coverage on dietary well being.
Moreover, the Federation said that the claims used to justify the taxes couldn’t be substantiated by Ghana’s Meals and Drug Authority.
The Federation expressed severe considerations concerning the monetary viability of companies working beneath the present tax situations, declaring that many firms within the fruit juice and sweetened beverage trade are getting ready to collapse as a result of rising manufacturing prices and diminished client buying energy.
The GFL labelled the tax as an “obnoxious” measure, emphasising that its affect undermines the financial and employment stability of the nation.
The GFL’s plea highlights the urgency of making a conducive surroundings for native industries. Of their letter, the Federation referred to as on the federal government to rethink its place and have interaction in significant dialogue to handle these urgent points.
They argued that reversing the excise duties wouldn’t solely revitalise the struggling sector but additionally safeguard hundreds of jobs and enhance financial progress.
Learn additionally: Scrap 20% excise tax on sweetened beverages to support 24-hour economy, AGI urges gov’t
The Ghana Federation of Labour has delivered to gentle a difficulty that impacts not solely companies but additionally the livelihoods of workers and their households. With the sector on the breaking point, stakeholders can be intently watching the federal government’s response to this enchantment.
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