Ahead of the 2026 Budget Statement and Economic Policy presentation to parliament, some business groups and associations are full of expectations with the latest being the Food and Beverages Association of Ghana (FABAG).
FABAG is making seven (7) demands on the government to help improve the business environment.
A statement released by the association indicates that the FABAG expects the government to deliver a business-friendly budget that restores stability, competitiveness, and growth to one of Ghana’s most critical sectors.
Representing key players across manufacturing, import, and distribution, FABAG says the industry has endured “years of economic turbulence” marked by high import duties, unstable exchange rates, inflationary pressures, and excessive taxation.
These, the Association warns, have undermined production, threatened jobs, and diminished Ghana’s appeal as a business destination within the sub-region.
FABAG has therefore outlined seven key demands it expects the 2026 Budget to address, each aimed at reviving the sector and setting Ghana’s food and beverage industry on a sustainable growth path.
Rationalize and Cut Nuisance Taxes
FABAG is urging the government to review and reduce what it describes as the “multiplicity of taxes” suffocating the industry. These include the COVID-19 levy, excise duties, the Environmental Excise (Producer Responsibility) tax, container fumigation fees, and several overlapping regulatory charges.
According to the Association, these taxes have significantly increased production costs, weakened competitiveness, and encouraged the smuggling of cheaper products into the market. FABAG wants the 2026 Budget to introduce targeted tax reliefs for local producers, particularly small and medium enterprises (SMEs), to encourage investment, job creation, and formalization.
Ensure Foreign Exchange Stability and Manage Inflation
The Association is calling for concrete fiscal and monetary measures to stabilize the cedi and manage inflation. The sharp depreciation of the currency, FABAG says, has raised import and production costs, eroding business margins and consumer purchasing power.
It believes exchange rate stability will restore investor confidence, enhance price predictability, and create a more conducive environment for business growth.
Support Local Manufacturing and Value Addition
FABAG wants the government to prioritize incentives for local manufacturers in the food and beverage industry. These include tax reliefs, affordable credit, and infrastructure support to improve factory efficiency and competitiveness.
The Association notes that with the right support, the sector can increase local production, boost exports, and contribute significantly to Ghana’s industrial transformation and job creation agenda.
Halt the Introduction of New Taxes and Levies
FABAG is calling for a freeze on new taxes in 2026. It argues that businesses are already overburdened by existing tax obligations, and any new levies would stifle recovery efforts. Instead, the Association urges the government to focus on improving tax collection efficiency, broadening the tax net, and plugging revenue leakages.
Strengthen and Streamline Regulatory Functions
The Association is appealing to the government to harmonize the operations of regulatory agencies such as the Ghana Revenue Authority (GRA), Food and Drugs Authority (FDA), and Ghana Standards Authority (GSA).
According to FABAG, the current overlap of mandates among these institutions creates unnecessary bureaucracy, duplication, and additional costs for businesses. Streamlining their functions, it says, will improve efficiency and ease of doing business.
Promote Environmentally Sustainable Practices
FABAG is advocating for incentives that reward companies adopting eco-friendly packaging and production methods, rather than imposing punitive environmental taxes. It proposes tax rebates or grants for firms that invest in sustainable technologies, aligning Ghana’s industry with global climate commitments while promoting responsible production.
Attract Investment and Create Jobs
Finally, FABAG wants the 2026 Budget to clearly spell out policies that attract both local and foreign investment into the agro-processing and manufacturing sub-sectors. Such investments, the Association says, will stimulate value addition, promote technology transfer, and generate decent jobs for Ghanaians.
FABAG’s Final Word
Reaffirming its commitment to national development, FABAG says it stands ready to collaborate with the government to build a stable and growth-oriented economy.
“A business-friendly 2026 Budget,” the Association insists, “will not only stimulate investment and production but also enhance revenue generation and improve the welfare of Ghanaians.”
