The Food and Beverages Association of Ghana (FABAG) says it will transfer the twenty percent tax slapped on beverages to customers.

FABAG has been advocating for the removal of the 20% exercise tax imposed on soft drinks, spirits, and water.

The Excise Duty Amendment bill which is part of three tax bills passed by Parliament in April 2023 imposed 20 percent tax on sweetened beverages and other products.

The Association says the taxes will negatively impact their businesses, which are already reeling under the current economic conditions.

In an interview with Citi News, the General Secretary of FABAG, Samuel Aggrey, said the government should find other means to generate revenue rather than overburdening businesses.

“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.”

Also reacting to the proposed Import Restrictions Bill, FABAG said the government must outline plans to boost local production instead of seeking an outright ban on the selected goods.

“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.”