Parliament Scraps Excise Duty on Local Fruit Juices to Boost Agro-Processing and Cut Consumer Prices

Parliament has approved the Excise Bill, 2026, abolishing excise duty on locally manufactured fruit juices in a move expected to lower retail prices, strengthen Ghana’s agro-processing industry and stimulate demand for locally grown agricultural produce.

The legislation introduces a new excise tax framework that combines fiscal incentives with industrial policy by rewarding manufacturers that increase the use of locally sourced raw materials in production, while maintaining Excise Tax Stamp requirements to improve tax compliance and revenue administration.

Presenting the Bill before Parliament, Deputy Finance Minister Thomas Nyarko Ampem said the reforms were designed to encourage domestic value addition and reduce reliance on imported production inputs.

Under the new regime, beer and beverage manufacturers that source a larger share of their raw materials locally will qualify for lower excise tax rates through a sliding-scale incentive structure. The policy is expected to deepen linkages between agriculture and manufacturing by creating stronger demand for Ghanaian crops.

A major feature of the legislation is the complete removal of excise duty on locally produced fruit juices. Companies such as Blue Skies and Akumfi Juice Factory are expected to benefit from the tax exemption, which government believes will translate into lower consumer prices while encouraging healthier consumption patterns.

The reform is also intended to improve the competitiveness of Ghana’s fruit-processing industry by expanding market demand for products manufactured from locally cultivated fruits, creating stronger incentives for investment in value addition and reducing post-harvest losses across agricultural value chains.

Beyond supporting manufacturers, the policy is expected to generate wider economic benefits for fruit farmers through increased procurement by processors, strengthen rural incomes and create additional employment opportunities throughout the agro-processing sector.

The Excise Bill forms part of the government’s broader fiscal reform programme, which seeks to use targeted tax incentives to promote industrialisation, encourage domestic manufacturing, increase local content in production and improve the long-term competitiveness of Ghanaian industries while supporting healthier consumer choices.