Government to Scrap Fruit Juice Excise Tax as Ghana Targets Agro-Processing Growth

Ghana’s government is set to abolish the 20% excise duty on locally manufactured fruit juices, signalling a shift towards tax policies designed to stimulate agro-processing, strengthen domestic manufacturing and create jobs across the agricultural value chain.

Presenting the 2026 Mid-Year Fiscal Policy Review to Parliament on Thursday, Finance Minister Dr. Cassiel Ato Forson said the measure forms part of the proposed Excise Duty Bill, a broader package of reforms aimed at modernising excise taxation, closing revenue leakages and encouraging local industrial production.

Under the proposed legislation, government will repeal the 20% excise duty on locally produced fruit juices, a tax introduced in 2023.

According to Dr. Forson, the policy reversal is intended to reduce production costs for local manufacturers, improve the competitiveness of Ghanaian-made beverages and support investment in agro-processing.

“The measure is intended to support agro-processing and job creation,” the Finance Minister told Parliament.

The proposal aligns with the government’s broader industrialisation agenda, which seeks to promote value addition to agricultural produce, expand domestic manufacturing capacity and reduce dependence on imported processed goods.

Alongside the tax relief, government is also seeking to tighten excise tax administration after identifying significant leakages in the taxation of wines and spirits.

Dr. Forson disclosed that an analysis of imports between 2023 and 2025 revealed that wines and spirits with a taxable value exceeding GH¢5 billion entered the country, yet approximately 78% of that value passed through customs regimes—including warehousing, transit, temporary admission and free zones—without attracting excise duty.

“In other words, almost four out of every five cedis of the potential excise tax base on wine and spirits escaped the tax net,” he said.

To address the loopholes, the proposed Excise Duty Bill introduces a hybrid taxation system combining value-based and quantity-based excise duties for wines and spirits. The government says the approach will reduce undervaluation, curb product misclassification and improve revenue collection without increasing statutory tax rates.

The twin reforms underscore the administration’s attempt to balance industrial policy with stronger tax compliance—offering targeted relief to domestic manufacturers while tightening enforcement in areas where government believes substantial revenue is being lost.

For investors and manufacturers, the abolition of the fruit juice excise duty is expected to lower production costs and encourage expansion within Ghana’s agro-processing industry, while the customs reforms are aimed at creating a fairer and more efficient excise tax regime.