Government challenges Accra Brewery’s 2,000 jobs warning over beer tax changes
The government has pushed back against Accra Brewery PLC’s warning that changes to Ghana’s beer excise duty structure could threaten as many as 2,000 jobs, saying the company has not provided sufficient evidence to support the claim.
The Ministry of Finance also pointed to the significant revenue the state has forgone through the existing tax concession, estimating the cost at about GH¢1.75 billion over the past three years.
Accra Brewery Limited (ABL) had raised concerns that the revised excise duty regime could substantially increase the tax burden on locally manufactured beer, discourage future investment and potentially give imported beer a competitive advantage.
The company estimates that the changes could have a financial impact of about US$7.5 million on its budget. It has therefore called on the government to retain the current sliding-scale excise duty rates for the 2026 and 2027 financial years.
In a detailed response issued on Monday, August 31, 2026, the Ministry of Finance said the debate should focus on whether the existing tax incentive is still achieving its intended objective, rather than simply on the economic contribution of the brewing industry.
According to the ministry, data from the Ghana Revenue Authority (GRA) indicate that approximately 85% of qualifying production by ABL and other local manufacturers falls within the highest concessionary category.
Under the previous arrangement, beer producers using more than 70% locally sourced raw materials benefited from an excise duty rate of 10%.
The government argued that the concentration of production in this top category means the sliding-scale system has largely lost its ability to encourage further increases in local raw material usage.
“A graduated incentive works by creating a marginal reward for movement between bands,” the government explained.
It added that with 85% of production already sitting in the highest band, producers have no higher category to move into, meaning the system provides little or no additional incentive.
New Excise Duty Rates
The revised Excise Act maintains the three-tier structure, but increases the excise rate for beer and stout containing more than 70% local raw materials from 10% to 25%.
For products containing between 50% and 70% local raw materials, the rate has been raised from 32.5% to 40%.
The standard excise rate remains at 47.5%.
The Ministry of Finance said the changes should therefore be viewed as a reduction in the level of preferential treatment rather than a complete withdrawal of the concession.
It further noted that locally produced beer in the highest category will continue to benefit from a 22.5 percentage-point tax advantage compared with imported beer, which remains subject to the standard 47.5% rate.
Government Questions Jobs Projection
The ministry also questioned ABL’s assertion that the new tax regime could put up to 2,000 jobs at risk.
It described the estimate as lacking sufficient supporting analysis, noting that the company had not provided details such as the methodology used, the relevant base year, price elasticity assumptions or a clear definition of what constitutes a job being “at risk.”
“The publication asserts the conclusion and supplies none of the intermediate steps,” the ministry stated.
The government also challenged ABL’s reference to an Oxford Economics study which estimated that Ghana’s beer sector supported about 52,000 jobs in 2023.
According to the ministry, that figure represents the broader economic footprint of the beer industry and should not be interpreted as the number of jobs directly dependent on the excise tax concession.
The ministry said the appropriate assessment should instead compare employment under the revised excise rates with employment under the previous 10% concession.
In other words, the key issue is the potential employment effect of changing the tax rate, rather than the much broader question of what would happen to jobs if Ghana’s beer industry did not exist.
Government Seeks Details on US$7.5 Million Impact
The Ministry of Finance also disputed ABL’s estimate that the revised regime could add US$7.5 million to its costs.
It said the brewery had not supplied enough information to explain how the figure was calculated.
The ministry wants the company to disclose details including production volumes, ex-factory prices, product mix, applicable tax bands, exchange-rate assumptions and whether the additional tax burden is expected to be passed on to consumers through higher prices.
It has consequently asked ABL to present its calculation in Ghana cedis and reconcile the estimate with figures contained in its audited financial statements.
The government’s position is that any assessment of the impact of the new excise regime should be supported by transparent data and verifiable assumptions, particularly given the substantial revenue implications of the existing concession.