DEGLORY GH MEDIA

The Food and Beverages Association of Ghana (FABAG) is urging the government to remove import duties on key food items such as rice, maize, and cooking oil. This appeal comes in response to growing food insecurity and rising inflation, with FABAG citing Nigeria’s recent decision to scrap duties on similar goods to stabilize prices.

According to FABAG, eliminating these taxes would significantly ease the financial burden on households, improve access to food, and help tackle malnutrition, especially among the most vulnerable groups. The association cautioned, however, that without strong regulatory oversight, these goods might be smuggled into neighboring countries, diminishing the intended benefits.

FABAG also criticized a government proposal to restrict the importation of 22 food products, including poultry and vegetable oils. They argue that such a move could worsen food inflation and foster corruption, describing the plan as a political tactic designed to benefit a few.

In addition, FABAG called for the cancellation of excise taxes on locally produced fruit juices and sweetened beverages. The group noted that since the tax was introduced, sales have dropped by over 50%, causing job losses and weakening local producers' ability to compete internationally.

These concerns echo similar calls from other industry groups like the Ghana Union of Traders Associations (GUTA) and the Ghana National Chamber of Commerce and Industry (GNCCI), who have also asked for a review of current tax policies. The situation is being worsened by a severe drought in northern Ghana, threatening further food shortages and highlighting the need for immediate government intervention.