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20% Excise Duty Amendment levy will increase the cost of production

The Parliament of Ghana approved the three revenue bills which include the Excise Duty Amendment. The Excise Duty Amendment levy imposes new excise duty of 20 percent for non-alcoholic sweetened beverages, from 17.5 percent to 20 percent excise duty on mineral water, 45 percent of duty for wines, including sparkling wine, and 50 percent for spirits, all at ex-factory prices, was not appropriate.

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The Ghana Federation of Labour (GFL) has expressed concerns that the new levy would increase the cost of production, which would be transferred to the final consumer.

“The proposed 50% excise duty on spirits can be imposed on imported spirits only to allow local industry to grow.

“Maintain the current excise duty on malts but exempt mineral water from the excise as the beverage industries have been under pressure from the harsh business climate, ” he said.

“Indeed, if the principle of introducing cost to discourage consumption and its adverse consequences hold true, the increased cost will as well lower demand and, therefore, the expected revenue projection is not likely to be realized,” he said.

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On Friday, March 31 parliament passed the three revenue bills. The government is seeking to generate approximately GH¢4 billion per year to supplement domestic revenue.

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