Accra Brewery Limited (ABL) has appealed to government to delay the implementation of new excise duty rates on locally produced beer to allow for further consultations with industry.

The company says the increases could affect production costs, consumer prices, demand, investment and employment across the brewing value chain.

ABL Country Director, Thatokuhle Hlongwa, made the call at the Association of Ghana Industries’ 2nd Quarter Business Barometer presentation and Corporate Forum in Accra.

Under the approved changes, excise duty on locally manufactured beer will increase from 32.5% to 40%.

The rate for beer with high local raw material content, including cassava-based beer, will rise from 10% to 25%.

The excise duty on imported beer will remain at 47.5%.

Hlongwa said the proposed increases could have consequences beyond the direct tax burden on manufacturers.

“Changes to the excise taxation have implications that extend far beyond the taxes paid by the manufacturers. Such changes affect production costs, consumer prices, business volumes, investment decisions, employment levels, and ultimately the industry’s contribution to national economic growth,” he said.

He said ABL’s concerns were not a rejection of taxation or government’s efforts to raise revenue.

“Our opinion is not against taxation, nor is it opposed to government’s legitimate objective of mobilising revenue for national development,” he said.

Hlongwa instead called for further engagement between government and industry before the new rates take effect.

“We are not against taxation. Absolutely not. But what we are doing is, let’s have a further dialogue, a further stakeholder engagement, give us the opportunity to dialogue further,” he said.

ABL said the brewing industry contributes to the economy through local manufacturing, employment, agriculture, local procurement and distribution.

The company also expressed particular concern about the proposed increase in excise duty on cassava-based beer, saying it could have implications for farmers and other businesses within the local agricultural value chain.

ABL said it remains committed to working with government, the AGI and other stakeholders to find a balance between revenue mobilisation and the protection of jobs, investment, local manufacturing and agricultural development.