The Food and Beverages Association of Ghana (FABAG) has cautioned government against introducing new taxes in the upcoming 2026 Budget, warning that excessive levies are crippling Ghana’s manufacturing base and undermining job creation.
According to the Association, the food and beverage industry — one of the largest private-sector employers — is struggling under the weight of multiple taxes, volatile foreign exchange rates, and rising inflation, which continue to erode investor confidence.
In a statement signed by its Executive Chairman, John Awuni, FABAG urged government to design a “business-friendly and recovery-focused” budget that prioritises industrial growth, job preservation, and competitiveness.
“The business environment has become increasingly difficult for manufacturers and SMEs. What we need is a clear roadmap that restores confidence, rationalises taxes, and supports value addition,” Mr. Awuni said.
He argued that while fiscal discipline is important, continuous tax hikes and the proliferation of levies are counterproductive.
“The focus should be on efficiency in tax collection and expanding the tax net, not introducing new burdens on struggling industries,” he added.
FABAG emphasised that stabilising the cedi, curbing inflation, and improving coordination among key regulatory bodies such as the GRA, FDA, and GSA are essential to restoring growth and investor confidence.
The Association also called for targeted incentives and affordable financing to support local manufacturers and exporters, stressing that energy cost reductions and access to credit would stimulate productivity across the sector.
Additionally, FABAG proposed that government encourage sustainable manufacturing practices through tax rebates and grants rather than punitive environmental levies.
“The private sector is ready to lead Ghana’s economic recovery, but government must create an enabling environment for industries to thrive,” FABAG stated.
It concluded that a growth-oriented 2026 Budget could mark a turning point for Ghana’s manufacturing economy, helping transform the country into a competitive hub for food processing and trade in West Africa.
