Mid-year Budget Review: Gov’t abolishes 20% excise duty on locally produced fruit juice

The government has abolished the 20 per cent excise duty on locally manufactured fruit juice to support agro-processing and create jobs.

Finance Minister Dr. Cassiel Ato Forson announced the measure on Thursday while presenting the 2026 Mid-Year Fiscal Policy Review to Parliament, describing it as part of broader reforms to strengthen Ghana’s excise duty regime and promote local production.

The decision forms part of the proposed Excise Duty Bill, which introduces a package of reforms aimed at improving tax compliance, addressing undervaluation and ensuring the country derives greater revenue from excisable products.

The Finance Minister said while government was tightening enforcement in some areas, it was also providing targeted relief to support strategic sectors of the economy.

“The Excise Duty Bill before this House introduces a comprehensive package of reforms to close these leakages,” Dr. Forson told Parliament.

He explained that the reforms include the introduction of a hybrid excise system for wines and spirits, revised excise rates for beer and stout products, stronger compliance measures through electronic registration and track-and-trace systems, and the removal of the excise duty on locally produced fruit juice.

“Specifically, Government will abolish the payment of 20 percent excise duty on locally manufactured fruit juices introduced in 2023. This is to support agro-processing and job creation,” he stated.

Dr. Forson said the policy seeks to strengthen local manufacturing by reducing production costs for fruit juice processors while encouraging greater value addition in Ghana’s agricultural sector. He noted that supporting local industries remains central to the government’s efforts to stimulate economic growth and expand employment opportunities.

The Finance Minister also justified the wider excise reforms by pointing to significant revenue losses within the current system.

“Analysis of wine and spirit imports between 2023 and 2025 shows a taxable value of over GH¢5 billion. However, about 78 percent, worth nearly GH¢4 billion, entered customs procedures such as warehousing, transit, temporary admission and free zones without attracting excise duty,” he said.

Government expects the combined reforms to improve revenue mobilisation, promote compliance and protect legitimate businesses while providing targeted incentives for local manufacturers.

The removal of the excise duty on fruit juice is expected to boost investment in agro-processing, strengthen demand for locally grown fruits and support job creation across the agricultural value chain.