FABAG urges urgent review of import taxes ahead of 2026 budget
The Food and Beverages Association of Ghana (FABAG) has called on the Ministry of Finance to undertake a comprehensive review of the country’s import tax regime ahead of the 2026 Budget Statement.
The Association warns that high import duties and cumbersome port procedures are fuelling smuggling, depriving the state of vital revenue, and threatening the survival of legitimate businesses.
In a statement issued in Accra, FABAG described the current trade environment as “unsustainable,” noting that compliant importers are unfairly penalised while criminal networks thrive.
The Association highlighted that high import duties, multiple charges, and delays at ports have made it more profitable for smugglers to operate outside the formal system.
“As the Ministry of Finance prepares to present the 2026 Budget Statement, we urge a thorough review of the import tax regime. High import duties and complex port procedures have been identified as major drivers of smuggling, and reform is urgently needed,” the statement said.
FABAG described smuggling as a “highly organised and well-funded network” that has evolved into a national crisis undermining Ghana’s industrial base.
The Association stressed that unchecked smuggling weakens local production, erodes investor confidence, and puts thousands of jobs at risk in the manufacturing, retail, and logistics sectors.
The Association further estimated that Ghana loses hundreds of millions of cedis weekly through unmonitored smuggling operations at both official and unofficial entry points, particularly in goods such as rice, sugar, cooking oil, alcoholic beverages, and textiles.
Many of these illicit products are of substandard quality, flooding the market and placing law-abiding traders at a disadvantage.
FABAG cautioned that Ghana cannot continue losing substantial revenue while “burdening ordinary citizens and businesses with additional electricity and water tariffs.”
The Association emphasised that tackling smuggling is not only an economic issue but also “a matter of national security and survival.”
“The government must urgently reform the tax and port systems to make legal trade more competitive. Deployment of technology, stronger enforcement at border points, and closer collaboration with local communities will be critical in curbing the menace,” it urged.
FABAG reaffirmed its commitment to supporting the government in promoting fair trade and protecting the integrity of Ghana’s market.
“Only through decisive reforms can we safeguard our borders, sustain local industries, and secure jobs for future generations,” the Association added.
