Akufo-Addo’s ‘we will move from taxation to production’ was a grand deception – Kwakye Ofosu

A pledge made by President Nana Addo Dankwa Akufo-Addo to shift the focus of the economy from taxation to production has been called a "deception" by Felix Kwakye Ofosu, who served as Deputy Minister of Information under the previous administration.

He pointed out that the government had instead implemented additional levies in order to raise revenue.

"After the nonsensical slogan 'we will move from taxation to production,'" the speaker said. After the Food and Beverage Association of Ghana (FABAG) issued a warning to Ghanains that increased costs of food and beverages were to be expected as a result of the newly implemented excise tax, he tweeted, "What a grand deception!"


The Excise Duty Amendment bill levies new excise duty at a rate of twenty percent for non-alcoholic sweetened beverages, an increase in excise duty on mineral water from seventeen and a half percent to twenty percent, forty-five percent of duty for wines, including sparkling wine, and fifty percent for spirits, all at ex-factory prices, which was not acceptable.

Additionally, the Ghana Federation of Labor (GFL) voiced their fears that this charge would result in an increase in the cost of production, which would then be passed on to the end user.

"The proposed 50% excise duty on spirits can be imposed on imported spirits only to allow the local industry to grow," the association said in a statement. "Maintain the current excise duty on malts but exempt mineral water from the excise as the beverage industries have been under pressure from the harsh business climate," the association said in the statement.

"Indeed, if the principle of introducing cost to discourage consumption and its adverse consequences hold true, the increased cost will as well lower demand, and as a result, the expected revenue projection is not likely to be realized," it added. "In fact, if the principle of introducing cost to discourage consumption and its adverse consequences hold true, the increased cost will as well lower demand."