Accra Brewery Limited is reportedly considering shutting down its operations if the revised Excise Bill passed by Parliament is fully implemented.
The decision is expected to depend on President John Mahama’s position on the bill, which proposes an excise duty of between 7% and 15% on beer produced by local manufacturers.
Sources familiar with the situation say the new tax could expose Accra Brewery to a direct impairment hit of about US$7 million, raising concerns about the sustainability of its operations.
Industry players have also warned that the increased tax burden could force some beverage manufacturers to scale down operations or lay off workers. Local producers are already facing stiff competition from imported beverages, putting further pressure on their margins and revenues.
However, some companies are believed to be capable of absorbing the additional cost if implementation is deferred until January 2027, giving the industry more time to adjust.
The brewing industry is therefore urging consideration of the potential impact of the new excise duty on jobs, local manufacturing and the wider beverage sector.
It remains unclear whether the concerns have been formally presented to Finance Minister Dr Cassiel Ato Forson or whether government is considering delaying implementation to allow for further consultations with affected businesses.
