Ghana Revenue Authority (GRA) officers swept through Accra’s central markets Friday, confiscating untaxed beverages in an intensified campaign that reflects mounting pressure to meet International Monetary Fund (IMF) revenue targets under the country’s $3 billion bailout program.
The Customs Division raids targeted Makola, Tudu and Central Business District markets, seizing products including Malta Guinness, Beta Malt and other carbonated drinks lacking proper excise stamps. The operation signals a broader enforcement shift as Ghana struggles to achieve its targeted primary fiscal surplus amid declining beverage tax collections.
Edward Appenteng Gyamera, Commissioner of the Domestic Tax Revenue Division, revealed that excise receipts have declined significantly in early 2025, threatening revenue projections crucial to the IMF program. The shortfall comes as Ghana must achieve a 1½ percent of GDP fiscal primary surplus in 2025 to maintain access to international funding.
“We have seen a significant drop in excise tax in the last few months, and it is the result of this behaviour by some suppliers and manufacturers,” Gyamera told reporters during the enforcement action.
The timing proves critical as Ghana’s excise tax on sugar-sweetened beverages generated substantial revenue growth from GHS 735 million in 2022 to GHS 1,325.6 million in 2023. However, recent enforcement challenges have undermined this progress, with smuggled products from neighboring West African markets flooding local retailers without proper tax clearance.
Guinness Ghana Breweries Limited reportedly initiated the complaint that triggered Friday’s operation, highlighting how tax evasion creates unfair competition for compliant manufacturers. The brewery’s concerns reflect broader industry frustration with enforcement gaps that allow untaxed imports to undercut locally produced beverages.
The GRA’s escalated approach demonstrates the authority’s recognition that beverage sector compliance directly impacts Ghana’s ability to meet IMF benchmarks. Ghana’s tax revenue remains below the government’s target of 18–20% of GDP by 2027, making every revenue stream crucial for program success.
Officials confirmed that confiscated products were transferred to Customs warehouses while affected retailers received summons for Monday questioning. The enforcement action extends beyond immediate seizures, with Gyamera announcing plans for expanded operations targeting manufacturers directly.
“We shall prepare and do a bigger operation targeting the manufacturers,” he stated, indicating the current retail-focused raids represent preliminary enforcement before broader industry-wide action.
The beverage tax enforcement highlights Ghana’s delicate balance between revenue mobilization and economic stability under IMF oversight. The 20 per cent tax on sugar-sweetened beverages was implemented following parliamentary passage in March 2023, creating significant revenue potential that enforcement gaps now threaten.
Market traders affected by the raids expressed concern about the economic impact on small businesses already struggling with inflation and reduced consumer spending. The enforcement campaign creates additional pressure on informal sector operators who may lack awareness of changing tax requirements.
Ghana’s broader fiscal challenges underscore why beverage tax compliance has become a priority enforcement area. The country’s economic recovery depends heavily on domestic revenue mobilization, with excise taxes providing relatively stable income streams compared to volatile commodity exports.
The GRA’s intensified approach suggests authorities recognize that achieving IMF targets requires robust enforcement rather than simply expanding tax bases. Friday’s operation demonstrates the government’s willingness to pursue aggressive collection methods to maintain international funding access.
Industry observers note that sustained enforcement campaigns could reshape Ghana’s beverage market by eliminating unfair competition from untaxed imports. However, the approach also risks creating additional compliance burdens for legitimate businesses already facing economic headwinds.
The outcome of expanded enforcement efforts will likely influence whether Ghana meets its 2025 fiscal targets and maintains favorable IMF program reviews. Success in beverage tax collection could provide a model for improving compliance across other excise categories including tobacco and alcohol.
Source: newsghana.com.gh
