The government announced that the 20% excise levy on domestically created fruit juices, which was implemented in 2023, will be eliminated as part of initiatives to assist agro-processing, stimulate local production, and generate jobs.
Finance Minister Dr. Cassiel Ato Forson announced the tax relief while presenting the 2026 Mid-Year Fiscal Policy Review in Parliament.
According to the Finance Minister, the decision is part of an excise duty reform package aimed at increasing efficiency, addressing tax loopholes, and creating a more favourable environment for local firms.
“Mr Speaker, we will abolish the payment of 20% excise duty on locally manufactured fruit juice introduced in 2023. This is to support agro-processing and job creation,” explained Dr. Ato Forson.
The government stated that the decision is likely to relieve production demands on local fruit juice businesses and boost investment in Ghana’s agro-processing sector.
Concerns about large revenue losses due to flaws in the current system, especially in the wine and spirits import industry, prompted the excise duty revisions.
An examination of wine and spirit imports between 2023 and 2025 revealed a taxable value of almost GH¢5 billion, according to the Finance Minister.
However, over 78% of these imports—worth close to GH¢4 billion—went through customs processes like transit, warehousing, temporary admittance, and free zones without incurring excise tax.
According to him, this meant that only roughly one out of every five cedis in the potential excise tax base was taxable. The government characterised this as an unsustainable and inefficient arrangement.
The government is implementing several measures to close these gaps, including as a hybrid excise system that combines quantity-based and value-based taxation on wines and spirits to avoid misclassification and undervaluation.
In order to better align revenue goals while preserving incentives for local manufacturing, the government will also reassess the current sliding-scale excise rates for beer and stout goods.
One of the most important relief measures, according to the government, is the elimination of the 20% excise tax on locally made fruit juices, which is meant to boost local production and encourage the creation of jobs.
Source: newsthemegh.com