Former Deputy Minister of Information Felix Kwakye Ofosu has described the promise by President Nana Addo Dankwa Akufo-Addo to move the economy from taxation to production as a deception.
He noted that the government has rather introduced more taxes to generate revenue
“After the nonsensical slogan ‘we will move from taxation to production’. What a grand deception!” he tweeted after the Food and Beverage Association of Ghana (FABAG) warned Ghanains to expect high prices of food and beverages due to the new excise tax.
After the nonsensical slogan "we will move from taxation to production". What a grand deception! pic.twitter.com/Grq0RXiFRB
— Felix Kwakye Ofosu (@FelixKwakyeOfo1) August 14, 2023
The Excise Duty Amendment levy imposes new excise duty at 20 per cent for non-alcoholic sweetened beverages, from 17.5 percent to 20 percent excise duty on mineral water, 45 percent of duty for wines, including sparkling wine and 50 percent for spirits, all at ex-factory prices, was not appropriate.
The Ghana Federation of Labour (GFL) also expressed concerns that this levy would increase the cost of production, which would be transferred to the final consumer.
“The proposed 50% excise duty on spirits can be imposed on imported spirits only to allow local industry to grow.
“Maintain the current excise duty on malts but exempt mineral water from the excise as the beverage industries have been under pressure from the harsh business climate,” the association said in a statement
“Indeed, if the principle of introducing cost to discourage consumption and its adverse consequences hold true, the increased cost will as well lower demand and, therefore, the expected revenue projection is not likely to be realised,” it added.