Published March 28, 2026
By ChiniMandi
The Food and Beverages Association of Ghana (FABAG) has raised concerns over the government’s classification of sugar as a “dual-purpose” product, saying the move is increasing production costs for local manufacturers, 3 News reported.
Under current rules, sugar is treated both as a finished consumer product and as a raw material for industrial use. According to the association, this approach subjects industrial sugar to the same taxes and levies applied to retail sugar, raising costs for businesses that use it as an input.
FABAG General Secretary Samuel Aggrey said the classification has led to higher expenses for manufacturers, as tax structures do not differentiate based on usage or volume.
The association noted that the added costs are being passed on to consumers, which could affect the competitiveness of locally produced goods compared to cheaper imports.
FABAG also said the current system applies a uniform tax structure that does not reflect the role of sugar as a key raw material in food and beverage production.
It added that the Ghana Revenue Authority already has mechanisms in place to monitor how sugar is used in manufacturing, making the dual classification unnecessary.
The association has urged the Ministries of Trade and Industry and Finance to review the policy and consider classifying sugar solely as a raw material for licensed manufacturers. It said such a move would help reduce costs, improve supply chains, and support the country’s industrial growth efforts.