Avoid New Taxes in 2026 Budget- FABAG Urges Government
By Praisebell Rosemond Larbi
The Food and Beverages Association of Ghana (FABAG) has urged the government to refrain from introducing new taxes in the upcoming 2026 Budget, warning that further fiscal burdens could cripple the already struggling manufacturing and import sectors.
In a statement issued ahead of the budget presentation, FABAG said the food and beverage industry has been severely impacted by “high import duties, rising production costs, unstable exchange rates, inflationary pressures, and excessive taxation.”
According to the Association, these factors have placed significant strain on manufacturers, importers, and distributors, threatening jobs, eroding competitiveness, and diminishing Ghana’s appeal as a business destination.
FABAG has therefore called on the Minister of Finance to use the 2026 Budget to review and reduce what it describes as nuisance taxes, including the COVID-19 levy, excise duties, the Environmental Excise tax, and container fumigation fees.
“The cumulative impact of these taxes has driven up the cost of doing business, undermined competitiveness, and encouraged the smuggling of cheaper products into the country,” the statement read. The Association insisted that businesses in the sector are already overburdened and cannot absorb any new levies.
“The Association expects a firm assurance from the government that no new taxes will be introduced in 2026,” FABAG stated.
Instead, it urged the government to focus on improving revenue collection efficiency, expanding the tax net, and addressing leakages in the system. FABAG also called for stronger support for local manufacturing through stable exchange rates, inflation control, and predictable fiscal policy.In addition, the group appealed for a review of overlapping regulatory functions among key agencies such as the Ghana Revenue Authority (GRA), Food and Drugs Authority (FDA), and Ghana Standards Authority (GSA). It said the duplication of roles has resulted in bureaucratic bottlenecks, delays, and higher costs of operation.
FABAG reaffirmed its commitment to collaborating with government to build a resilient and growth-oriented economy.It emphasized that a business-friendly 2026 Budget, focused on reducing taxes and improving efficiency, would help stimulate private sector investment, enhance job creation, and ultimately improve the welfare of Ghanaians.
