The government has rejected claims by Accra Brewery Limited that new beer excise rates will damage local manufacturing, disputing the company's job loss figures and demanding verifiable data.
Under newly approved tax reforms, the excise duty rate on locally manufactured beer increases from 32.5 percent to 40 percent.
Accra Brewery Limited has warned that the higher rate threatens its business operations, creates a potential US$7 million impairment cost, and puts 2,000 jobs at risk.
The company has raised the possibility of shutting down its operations in Ghana if the new tax schedule takes effect without changes.
Government officials responded by dismissing the company's warnings about mass layoffs, calling the figures unproven and unsubstantiated.
Tax increase puts local operations under pressure
The dispute centers on recent legislative changes to the excise duty applied to beer produced inside Ghana.
Under the newly approved reforms, the tax rate on locally manufactured beer moves from 32.5 percent up to 40 percent.
Accra Brewery Limited stated that this 7.5 percentage point increase adds severe financial pressure to its manufacturing operations in Accra.
The brewery warned that the higher tax load puts 2,000 jobs at risk across its workforce, distributor network, and operational supply chain.
The company also reported that it faces a potential US$7 million impairment charge on its financial statements due to the tax adjustment.
Because of these combined financial pressures, Accra Brewery Limited indicated that it is considering a complete shutdown of its manufacturing plant.
Company officials argue that higher production costs cannot be absorbed easily without cutting back on capital investment and workforce numbers.
Government rejects job loss claims and demands proof
The government has formally rejected Accra Brewery's
According to 3News.
