Business groups urge action on beverage smuggling in Ghana

The American Chamber of Commerce and the Spain-Ghana Chamber of Commerce have called on the Ghana Revenue Authority (GRA) to urgently address the smuggling of canned and PET soft drinks from neighbouring countries into Ghana.

In a joint statement, the two business chambers warned that the illegal trade threatens the survival of legitimate beverage manufacturers and undermines government revenue by bypassing taxes.

They highlighted that many of these smuggled drinks are sold without tax stamps and at prices significantly below the market rate, benefiting those who evade customs duties, excise taxes, and other levies.

The chambers also raised concerns over health and safety, noting that the smuggled drinks bypass regulatory checks by the Food and Drugs Authority (FDA).

“The FDA cannot verify the quality of these beverages, as they bypass established health regulatory processes,” the statement read, adding that authorised dealers suffer reputational damage when inferior products are sold as legitimate brands.”

The smuggling of Coca-Cola products, in particular, has been identified as a major concern.

The business groups urged the GRA to take swift action to stop the influx of these beverages.

They also called on the FDA, local authorities, and market leaders in key regions like Accra, Kumasi, Tamale, and Takoradi to step up efforts to protect brands, preserve government revenue, and safeguard jobs in the beverage industry.

Additionally, the chambers appealed to the Ministry of Trade and Industry, through the Ghana International Trade Commission (GITC), to address what they described as “unfair trade practices.”

They argued that this action is crucial to promoting investment in Ghana’s manufacturing sector and ensuring fair competition for businesses.

The chambers stressed that beverage smuggling not only harms legitimate businesses and government revenue but also poses risks to consumer health.

They called for coordinated efforts from all stakeholders to tackle the issue effectively.

Source:classfmonline.com