The Government of Ghana has issued a firm rejoinder to Accra Brewery PLC (ABL), rejecting the company’s warning that the country’s revised beer and stout excise regime threatens local manufacturing. The government has also refused the brewer’s call for a two-year freeze on the new rates, insisting that tax concessions must be linked to verified local content.
The dispute comes after ABL warned that the changes could increase the tax burden on locally produced beer, undermine investment, and put up to 2,000 jobs across the beer value chain at risk, while creating an unintended advantage for imported beer over local products. The company estimated the impact on its own budget at $7.5 million based on FY27 implementation assumptions and called for the existing rates to be frozen for FY26 and FY27.
Under the revised Excise Act, the sliding-scale structure has been retained but with significant adjustments. Beer containing more than 70% local raw materials will now attract a 25% excise rate, up from 10%. Products with 50% to 70% local content will face a 40% rate, up from 32.5%. Beer with less than 50% local content remains at 47.5%, the same standard rate applicable to imported beer .
Government: Revenue losses, verification concerns prompted review
In its rejoinder, the government said the review was triggered by Ghana Revenue Authority data showing that approximately 85% of qualifying local production is already assessed in the top concessionary band. This, officials argue, raises fundamental questions about whether the incentive is still functioning as intended .
Field verification in the Northern and Volta Regions also cast doubt on whether raw materials such as cassava, maize, sorghum and millet are genuinely sourced locally at the scale claimed by manufacturers . The government estimated cumulative revenue foregone under the existing structure at approximately GH¢1.75 billion between 2023 and 2025 .
The government said the sliding-scale structure has not been abolished and that a preferential margin of 22.5 percentage points below the standard rate remains available to top-band producers — a reduction in advantage, it argues, not a reversal favouring imports .
ABL’s claims disputed
Government officials disputed ABL’s $7.5 million and 2,000-jobs figures as unsubstantiated and not reproducible. They also noted that a widely cited Oxford Economics sector-employment figure was being misapplied to a narrower policy question .
The government said it would not suspend enacted rates on unquantified assertions and invited ABL to submit verifiable data for review by the Finance Ministry and GRA. This includes supplier and aggregator records, employment figures, and financial reconciliations .
Government affirmed openness to consultation on the regime’s long-term design while maintaining that preferential treatment must be linked to verified local content going forward .
Industry concerns
The Association of Ghana Industries (AGI) has previously expressed concern about the changes, warning that they could affect the use of locally sourced raw materials and disrupt the value chain supporting local manufacturers .
ABL Country Director Thatokuhle Hlongwa had earlier called for further dialogue and stakeholder engagement, emphasising that the company’s position should not be construed as resistance to taxation or the government’s efforts to increase revenue. He noted that changes to excise taxation affect production costs, consumer prices, business volumes, investment decisions, employment levels, and ultimately the industry’s contribution to national economic growth .
The brewing sector supports several areas of the economy, including agriculture, local procurement, manufacturing, distribution and employment, with ABL having made significant investments in local production and domestic sourcing .
The government has challenged ABL to provide verifiable data on its local raw-material purchases, farmers and aggregators, employment figures, the US$7.5 million calculation and the alleged competitiveness disadvantage. It says it remains open to evidence-based consultation but will not suspend rates already enacted by Parliament based solely on unsubstantiated claims.
