The Ghana Federation of Labour (GFL) has made an urgent appeal to the Finance Minister to remove the 20% excise duty imposed on locally manufactured fruit juices.
The tax, introduced in 2023, has reportedly pushed local companies to the brink of collapse, threatening jobs and livelihoods across the sector.
According to the Secretary General of Ghana Federation of Labour, Abraham Koomson, the excise duty has had devastating impact on local fruit juice manufacturers.
“We apologize for what may seem like persistent appeals” but the gravity of the situation demands urgent attention,” Abraham Koomson said.
The federation explained the contribution of local fruit juice producers to Ghana’s economy, particularly in terms of employment and the agricultural value chain.
The Federation warned that continued imposition of the excise duty could lead to job losses, impacting thousands of families who rely on such companies for their livelihoods.
Again, the federation stressed the competitive disadvantage faced by local manufacturers, who are taxed at a higher rate than imported fruit juices.
According to the federation, the disparity could exacerbate the challenges faced by local companies, ultimately leading to their collapse.
The Ghana Federation of Labour argued that the success of the government’s flagship program, the 24-hour economic policy, depends on the functioning of local manufacturing industries to create more jobs for the three-shift system.
The appeal is not the first time the federation has spoken out against the excise duty. In 2023, they opposed the introduction of the tax, citing its potential harm to local industries.
The government through the Ghana Revenue Authority (GRA) in 2023 imposed the excise duty on selected products, including alcoholic drinks, tobacco products, and petroleum products, to compensate for internal levies on goods of like nature.
Story By: Emmanuel Coffie
