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Gov’t to Abolish 20% Excise Duty on Locally Produced Fruit Juice to Boost Agro-Processing and Job Creation

 Excise Duty, Agro-ProcessingThe Government has announced plans to abolish the 20 per cent excise duty on locally manufactured fruit juices, a move aimed at boosting agro-processing, supporting local manufacturers and creating jobs across the agricultural value chain.

The measure forms part of the proposed Excise Duty Bill, one of several tax reforms outlined by Finance Minister Dr. Cassiel Ato Forson during the presentation of the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23.

According to Dr. Forson, the reform is designed to ease the tax burden on domestic producers, stimulate investment in agro-processing and encourage greater value addition to Ghana's agricultural produce.

We will abolish the payment of the 20 per cent excise duty on locally manufactured fruit juices introduced in 2023 to support agro-processing and job creation," the Finance Minister announced.

The tax relief is expected to make locally processed fruit juices more competitive, encourage expansion within the manufacturing sector and strengthen demand for raw materials sourced from Ghanaian farmers.

The announcement reflects the government's broader strategy of promoting industrialisation through targeted tax incentives while improving the efficiency of the country's revenue system.

Excise Tax Reforms to Plug Revenue Leakages

Beyond the tax relief for local fruit juice producers, Dr. Forson disclosed that the government is overhauling Ghana's excise tax regime to address significant revenue leakages, particularly in the taxation of imported wines and spirits.

He revealed that an analysis of imports between 2023 and 2025 showed that wines and spirits with a taxable value exceeding GH¢5 billion entered the country, yet approximately 78 per cent of that value escaped excise taxation after passing through customs procedures such as warehousing, transit, temporary admission and free zones.

Almost four out of every five cedis of the potential excise tax base on wine and spirits escaped the tax net. Only one cedi out of every five was subject to excise duty. That is neither efficient nor sustainable, and it must change," Dr. Forson told Parliament.

To close these loopholes, the proposed Excise Duty Bill introduces a hybrid excise tax system that combines value-based and quantity-based taxation for wines and spirits.

According to the Finance Minister, the new framework is intended to curb undervaluation and product misclassification, strengthen compliance and improve domestic revenue mobilisation without imposing additional tax burdens on compliant businesses.

The reforms form part of the government's wider fiscal agenda to modernise tax administration, eliminate inefficiencies and create a more competitive environment for local industries while safeguarding public revenue.

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