The Food and Beverages Association of Ghana (FABAG) has called on government to address what it describes as excessive taxation crippling the sector ahead of the 2026 Budget presentation.
In a statement issued ahead of the budget reading, FABAG said the industry has been burdened by “high import duties, rising production costs, unstable exchange rates, inflationary pressures, and excessive taxation.”
The Association warned that these challenges have placed significant strain on manufacturers, importers, and distributors, threatening jobs and undermining Ghana’s attractiveness as a business destination.
FABAG urged the Minister of Finance to use the 2026 Budget to reduce what it terms nuisance taxes, including the COVID-19 levy, excise duties, the Environmental Excise Tax, and container fumigation fees.
“The cumulative taxes have increased the cost of doing business, undermined competitiveness, and encouraged smuggling of cheaper products into the country,” the statement said.
The Association also called for a halt to any new taxes or levies, stressing that the business community is already overburdened. “The Association expects a firm assurance from government that no new taxes will be introduced in 2026,” it added.
Instead, FABAG urged the government to focus on improving revenue collection efficiency, expanding the tax net, and providing stronger support for local manufacturing. The group also highlighted the need for stable foreign exchange rates and inflation control.
The Association further recommended streamlining overlapping regulatory functions among agencies such as the GRA, FDA, and GSA to reduce bureaucracy and lower business costs.
FABAG reaffirmed its commitment to collaborating with government to build a stable, growth-oriented economy, noting that a business-friendly 2026 Budget will “stimulate investment, enhance revenue, and improve the welfare of Ghanaians.”
Source: adomonline.com
