Govt urged to tackle smuggling of canned and PET packaged beverages

On September 18, 2024, 9:25 PM

The American Chamber of Commerce and the Spain-Ghana Chamber of Commerce have urged the Ghana Revenue Authority (GRA), specifically, its Customs Division, to treat with urgency credible reports from members in the beverage manufacturing sector regarding the smuggling of canned and PET soft drinks from neighbouring countries into Ghana.

This illegal activity threatens the survival of legitimate beverage manufacturers and undermines government revenue through taxation.

Some of these beverages are offered for sale without tax stamps and at prices significantly below prevailing market rates, making them accessible only to those who evade necessary customs duties, excise taxes, and other levies.

Moreover, the smuggling of these products raises serious health and safety concerns for consumers. The Food and Drugs Authority (FDA) cannot verify the quality of these beverages, as they bypass established health regulatory processes.

Authorized dealers and franchisees suffer reputational damage when inferior products are passed off as their own in the market.

“We urgently call upon the GRA to take decisive action to halt the smuggling of these PET and canned beverages, particularly Coca-Cola products, which are among the most affected.

“We also urge the FDA, local authorities, and market leaders in major regions such as Accra, Kumasi, Tamale, and Takoradi to act decisively to protect these brands, preserve government revenue, and safeguard employment opportunities within the beverage sector.

“Additionally, we entreat the Ministry of Trade and Industry, through the Ghana International Trade Commission (GITC), to address these unfair trade practices. This action is essential to encourage investment in Ghana’s manufacturing sector and ensure a level playing field for all businesses operating within the country.

The smuggling of beverages into Ghana not only undermines legitimate businesses and government revenue but also poses risks to consumer health and safety. All stakeholders must collaborate to combat this issue effectively.