The government has announced the abolition of the 20% excise duty on locally manufactured fruit juices, introduced in 2023, as part of measures to support agro-processing, boost local production and create jobs.
The tax relief was announced by Finance Minister Dr. Cassiel Ato Forson during the presentation of the 2026 Mid-Year Fiscal Policy Review in Parliament.
According to the Finance Minister, the decision is part of reforms to the excise duty regime aimed at improving efficiency, closing tax loopholes and creating a more supportive environment for local businesses.
“Mr Speaker, we will abolish the payment of 20% excise duty on locally manufactured fruit juice introduced in 2023. This is to support agro-processing and job creation,” Dr. Ato Forson stated.
The government explained that the move is expected to ease production pressures on local fruit juice manufacturers and encourage investment within Ghana’s agro-processing sector.
The excise duty reforms come after concerns over significant revenue losses arising from weaknesses in the existing system, particularly within the wine and spirits import sector.
The Finance Minister noted that an analysis of wine and spirit imports between 2023 and 2025 showed a taxable value of more than GH¢5 billion. However, about 78% of these imports, valued at nearly GH¢4 billion, entered customs procedures such as warehousing, transit, temporary admission and free zones without attracting excise duty.
He said this meant that only about one out of every five cedis within the potential excise tax base was subject to taxation, a situation the government described as inefficient and unsustainable.
To address these gaps, the government is introducing a number of reforms, including a hybrid excise system that combines value-based and quantity-based taxation for wines and spirits to prevent undervaluation and misclassification.
The government will also review the existing sliding-scale excise rates for beer and stout products to better align revenue objectives while maintaining incentives for local production.
However, the removal of the 20% excise duty on locally produced fruit juices remains one of the key relief measures announced, with government indicating that it is intended to strengthen local manufacturing and support job creation.