Ahead of the presentation of the 2026 National Budget Statement and Economic Policy, the Food and Beverages Association of Ghana (FABAG) has urged the government to deliver a business-friendly budget that supports local industries and stimulates economic growth.
In a statement copied to The Chronicle, the Association said a budget tailored to promote industrial competitiveness would create a “win-win situation” for both government and businesses.
“We believe that a business-friendly 2026 Budget will not only stimulate investment and production, but also enhance revenue generation and improve the welfare of Ghanaians,” the statement said.
FABAG emphasised that the upcoming budget must clearly outline measures to attract both local and foreign investment into the agro-processing and manufacturing sub-sectors.
Such policies, it said, would ensure value addition, technology transfer, and the creation of decent jobs for Ghanaians.
As a key stakeholder in Ghana’s manufacturing and trade ecosystem, FABAG expressed optimism that the 2026 Budget would reflect policies that promote business recovery, competitiveness and sustainable industrial growth within the food and beverage sector.
“Over the past years, our industry has endured numerous challenges, including high import duties, rising production costs, unstable exchange rates, inflationary pressures and excessive taxation,” the Association noted, warning that these conditions have eroded competitiveness, threatened jobs and reduced Ghana’s attractiveness as a business destination.
Reduction in Nuisance Taxes
FABAG called on the Minister of Finance to review the multiplicity of taxes, levies, and charges imposed on the sector, including the COVID-19 levy, excise duties, the Environmental Excise (Producer Responsibility) tax, container fumigation fees and various regulatory fees.
According to the Association, the cumulative tax burden has increased the cost of doing business, undermined competitiveness and encouraged the smuggling of cheaper products into the country.
FABAG, therefore, urged the government to introduce targeted tax reliefs for local producers, particularly Small and Medium Enterprises (SMEs) to stimulate investment, job creation and formalisation.
On the issue of currency depreciation, FABAG expressed concern over the persistent decline in the value of the cedi and its impact on import and production costs.
“FABAG urges the government to adopt pragmatic fiscal and monetary measures that ensure exchange rate stability and control inflation to support price predictability and investor confidence,” the statement read.
The Association also called for incentives and tax reliefs to enhance the capacity, productivity, and export potential of local manufacturers.
These should include access to affordable credit, energy cost reduction, and infrastructure support to help factories operate competitively.
FABAG cautioned against the introduction of new taxes or levies in the upcoming budget, saying the business community is already overburdened.
Instead, the Association urged government to focus on improving revenue collection efficiency and expanding the tax net.
Streamlining Regulatory Functions
FABAG further appealed to the government to harmonize overlapping regulatory roles among agencies such as the Ghana Revenue Authority (GRA), Food and Drugs Authority (FDA) and Ghana Standards Authority (GSA).
It said this would help reduce bureaucratic bottlenecks, duplication, and operational costs.
The Association also encouraged the government to promote environmentally sustainable packaging and production by providing incentives such as tax rebates or grants for companies adopting eco-friendly technologies.
According to FABAG, such measures would better align Ghana’s industry with global sustainability standards and the nation’s climate commitments, rather than imposing additional environmental taxes.
For more news, join The Chronicle Newspaper channel on WhatsApp: https://whatsapp.com/channel/0029VbBSs55E50UqNPvSOm2z
