Government to lose revenue through smuggling of alcoholic beverages

Accra, May 8, GNA - Members of Food and Beverages Association of Ghana (FABAG), has cautioned the government to tighten its security networks at Ghana's entry points or risk losing millions of cedis to illegal alcohol dealers.

"Their activity is not only denying the government the necessary revenue, but is also posing as a health risk to Ghanaians as most of their chemical compositions are not approved by Food and Drug Board and Ghana Standards Board." These were contained in a research conducted by the Association and presented to the Parliamentary Select Committee on Trade and Industry for study.

Mr. John Awuni, a member of FABAG, presented the survey to Members of Parliament and Journalists in Accra.

He said the introduction of excise duties on alcoholic beverages was also impacting negatively on revenue generation for government as the products were now cheaper in the hitherto importing countries than in Ghana. Mr. Awuni explained that before the increase in excise duties on the products, most West Africa countries bought their consignments in Ghana because it was cheaper.

He said the increase has made it expensive buying the same products thereby making Ghanaian imports to drop by almost 70 per cent. "Forewin Ghana Limited for example in the first quarter of 2009 exported 67, 917 cartons of Tetra wine to neighbouring countries attracting GHC 209.170.00 revenue to government, but with the increase in excise on alcoholic beverages, the Company managed to export only 20, 976 cartons of the stuff attracting only GHC 79.465.00 as revenue to government." Mr. Awuni, who is also Corporate Affairs Director of Finatrade Group of Companies, said while most of the alcoholic beverages were smuggled into the country and deprived government of revenue, others faked the original beverages which posed serious health risks on consumers. He said most of the smuggled and fake alcoholic beverages were sold to hotels, restaurants, night clubs and drinking Spots. Mr. Awuni suggested to government to advocate an excise stamp on bottles of all legitimate imported or locally produced alcoholic beverages to distinguish them from the fake ones.

He said that out of the total 10 million litres of alcohol consumed in the country on annually, about 55 per cent of those beverages were either smuggled into the country or faked and called on consumers and government to be vigilant on such products in the market.