The Food and Beverages Association of Ghana (FABAG) has welcomed the government’s abolition of the 20% excise duty on locally manufactured fruit juices, describing the reform as a major relief for an industry that has faced significant challenges since the tax was first introduced in 2023.
In a letter addressed to the Minister of Finance, Dr. Cassiel Ato Forson, and copied to the Commissioner-General of the Ghana Revenue Authority (GRA), FABAG confirmed that the new tax regime is expected to take effect from October 1, 2026, following the passage of the new Excise Duty Act by Parliament and its assent by President John Dramani Mahama .
A Long-Fought Battle for Relief
The 20% excise duty on locally manufactured fruit juices was introduced in 2023 under the Excise Duty (Amendments) Act, 2023 (Act 1093), as part of the government’s broader tax measures at the time . The tax was expanded to cover sweetened beverages, fruit juices, and other products previously not captured, leading to sharp increases in the prices of processed fruit juices and related products .
For fruit juice manufacturers, the impact was severe. FABAG had consistently argued that the tax crippled local production, with sales plummeting by over 50% since its implementation. In a February 2025 statement, the association warned that the excise tax had led to “job losses, reduced sales, constrained working capital, and weakened international competitiveness” of Ghanaian fruit juices . The association noted that net revenue to the government had actually declined rather than increased, as the local industry struggled under what it described as an “avalanche of taxes” already burdening manufacturers .
Government Delivers on Budget Promise
During the presentation of the 2026 Mid-Year Budget Review, Finance Minister Dr. Cassiel Ato Forson announced the government’s commitment to abolish the tax: “Mr Speaker, we will abolish the payment of the 20% excise duty on locally manufactured fruit that was introduced in 2023” .
That commitment has now been fulfilled. Parliament passed the Excise Bill, 2026, approving a zero excise duty policy for locally manufactured fruit juices as part of broader tax reforms aimed at reducing prices, promoting healthier consumption, and supporting Ghana’s agro-processing industry . The new law also introduces a sliding-scale excise regime for beer and other beverages, under which tax rates are determined by the level of locally sourced raw materials used in production — rewarding manufacturers who use more local inputs with reduced excise rates .
Deputy Minister for Finance, Thomas Nyarko Ampem, told Parliament that locally produced fruit juices, including products from companies such as Blue Skies and Ekumfi Juice, would no longer attract excise duty. “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,” he stated .
Industry Readies for New Chapter
FABAG acknowledged the stakeholder engagement held on Friday, September 4, 2026, during which government officials informed industry players that the reform’s implementation date would be October 1 .
“We look forward to the commencement of the new regime and stand ready to work closely with Government and the Ghana Revenue Authority to ensure a smooth and successful implementation,” the Association said in its letter, signed by FABAG Chairman Rev. John Awuni .
FABAG assured the Finance Minister that fruit juice manufacturers would respond positively to the intervention, pledging to remain committed to “expanding production, creating jobs, increasing investment, strengthening domestic value addition, and contributing their fair share of taxes to national development through full compliance with all applicable tax laws” .
The Association expressed confidence that the policy measure would strengthen the fruit juice industry, improve competitiveness, stimulate further investment, contribute to increased economic activity, and support revenue generation through the broad range of taxes paid by industry .
Broader Economic Implications
The removal of the excise duty has been linked to the government’s 24-hour economy agenda, with FABAG noting that the reform would support local value addition, manufacturing, employment creation, and economic growth .
The Exotic Fruit Growers, Fruit Processors and Associations of Ekumfi and Asebu have also hailed the decision as a landmark intervention. The associations estimate that renewed growth in the industry could support the creation of between 60,000 and 150,000 direct and indirect jobs across farming, irrigation, harvesting, aggregation, transportation, packaging, manufacturing, logistics, marketing, retail, and export services. They further projected that strengthening local fruit processing could save Ghana more than US$200 million annually in imports of fruit juices and related beverage products .
More Work Ahead
While welcoming the reform, FABAG noted that more needs to be done to improve the competitiveness of the food and beverages sector and the private sector generally . The Ghana Federation of Labour (GFL) has similarly urged the government to go further by reviewing what it described as “nuisance taxes” — specifically citing the fumigation levy, the Import Declaration Form (IDF) levy, and the proposed cargo levy — warning that such charges inflate production costs and slow industrial growth .
The Ghana Union of Traders’ Associations (GUTA) had also identified the removal of the 20% excise duty on locally manufactured fruit juices as one of its four key expectations ahead of the 2026 Mid-Year Budget Review. GUTA President Clement Boateng noted that the excise duty had made local manufacturers uncompetitive .
FABAG nonetheless described the removal of the excise duty as a significant initiative and expressed its profound gratitude to the Finance Minister, Parliament, and the President for delivering on the commitment. “We believe that this policy measure will strengthen the fruit juice industry, improve competitiveness, stimulate further investment, contribute to increased economic activity, and support revenue generation,” the Association stated .
