Deputy Minister for Finance, Thomas Nyarko Ampem, has announced that locally manufactured fruit juices would no longer attract excise duty, a move aimed at boosting agricultural production and processing.
He said this after Parliament approved the Excise Bill, 2026, which removes excise duty on locally manufactured fruit juices as part of a broader tax reform package aimed at making the products more affordable, encouraging healthier consumer choices, and strengthening Ghana’s agro-processing sector.
The legislation also establishes a comprehensive legal framework for the assessment and collection of excise duty on selected imported and locally manufactured excisable goods, while retaining the mandatory use of Excise Tax Stamps on excisable products to improve compliance and revenue administration.
Presenting the Bill in Parliament on Tuesday, Thomas Nyarko Ampem explained that the new law introduces an incentive-based excise regime for beer and other beverages, with tax rates linked to the proportion of locally sourced raw materials used in production.
“The other thing we are seeking to do is to introduce a sliding scale for use of raw materials so that we can encourage the use of local raw materials in the manufacture of beer and other drinks so that the more raw materials you source locally to produce, the rate of excise duty goes down,” he said.
He said the policy was designed to stimulate demand for locally produced agricultural commodities while reducing manufacturers’ dependence on imported inputs.
“We are removing taxes on juices, local juices that are produced here, and so our Blue Skies, our Akumfi juice factory, will all be zero-rated, and that will bring the prices low, and it will encourage us to shift from the consumption of alcohol to fruit juices because we want to promote good health,” he stated.
Meanwhile, the Chairman of the Food and Beverages Association of Ghana (FABAG), John Awuni, has commended the government for abolishing the 20% excise duty on locally manufactured fruit juices, describing it as a major boost for local production, investment and job creation.
Speaking on Adom FM’s Dwaso Nsem, Mr Awuni said the decision was long overdue, revealing that FABAG had consistently opposed the levy since it was introduced.
“First of all, I want to strongly commend the Finance Minister and, for that matter, the NDC government for abolishing the 20% excise tax on fruit juices,” he said.
Mr Awuni explained that the association has in the past repeatedly petitioned successive governments because the tax discouraged local production, affected employment and failed to generate the expected revenue.
Story by Kofi Nartey
