Ghana’s Parliament has approved the three revenue bills – the Income Tax Amendment, the Excise Duty Amendment levy and the Growth and Sustainability Amendment Bills.
The Excise Duty Amendment levy, which imposes a new excise tax of 20% on non-alcoholic sweetened beverages, a duty increase from 17.5% to 20% on mineral water, a duty of 45% on wines, including sparkling wine, and a duty of 50% on spirits, all at ex-factory prices, was not suitable.
The Ghana Federation of Labour (GFL) voiced worry that this fee would raise manufacturing costs, which would be passed on to consumers.
“The proposed 50% excise duty on spirits can be imposed on imported spirits only to allow local industry to grow.
Read Also: Bui Sugar Limited to employ over 6,000 people
“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, ” he said.
“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,” he said.
SOURCE: 3NEWS
