Accra Brewery Limited is considering shutting down its operations over the implementation of the revised Excise Bill, Joy Business has reported.
The move is expected to depend on President John Mahama’s decision on the bill, which was passed by Parliament earlier this month.
The revised legislation seeks to impose an excise duty of between 7% and 15% on beer produced by local manufacturers, including Accra Brewery.
Joy Business understands that the new tax could result in the company taking a direct impairment hit of about US$7 million.
Sources familiar with the matter say the brewery is assessing the impact of the new tax regime and its implications for the sustainability of its operations.
Joy Business’ engagements with industry players have also confirmed concerns over the potential impact of the revised excise duty on local beverage manufacturers.
Some affected companies are reportedly considering scaling down operations and laying off workers if the new taxes are fully implemented.
Industry players say local beverage producers are already facing intense competition from imported products, which has put pressure on their margins and revenues.
There are also indications that some brewery companies could manage the additional tax burden if its full implementation is deferred until January 2027.
The industry is therefore concerned about the potential impact of the new excise duty on jobs and the wider beverage manufacturing sector.
Joy Business could not independently establish whether the concerns raised by the brewery industry have been formally presented to the Finance Minister, Dr Cassiel Ato Forson.
It is also unclear whether government is considering delaying implementation to allow for further consultations with affected companies.
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