Tax on soft drinks: Consumers may get tired and stop buying - FABAG

The Food and Beverages Association of Ghana (FABAG), has said the new amendments in the Excise duty bill will affect consumers as producers will be forced to transfer the extra cost to them.

According to the association, the introduction of new taxes will burden consumers and eventually lead to low patronage.

Speaking in an interview as quoted by citinewsroom.com, the General Secretary of FABAG, Samuel Aggrey, said: “It is the government pushing all these prices, and therefore the only option is to pass it on to the consumers. When consumers are burdened with more taxes, they may eventually refuse to buy, disrupting the entire supply chain and posing a challenge of habitual price increases from suppliers.”

The government has presented the Excise Duty Amendment bill to Parliament for approval.

As part of the amendments, the government is imposing a 20% excise tax on soft drinks, spirits, and water.

On the Import Restrictions Bill, Samuel Aggrey said the government must seek to encourage local production by creating the necessary avenues instead of seeking to restrict imports.

“We don’t need any legislation to control this; what we need is to figure out how we can grow the local sector. We expect the ministry to present alternative strategies to foster the local sector’s growth. Unfortunately, every collected penny seems to go towards government consumption, leaving the industry still suffering,” he said.

SSD/NOQ

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