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Government to scrap 20% excise duty on locally produced fruit juices

  Fri, 24 Jul 2026
Business & Finance Government to scrap 20% excise duty on locally produced fruit juices
FRI, 24 JUL 2026

Finance Minister Dr Cassiel Ato Forson has announced plans to remove the 20% excise duty imposed on locally manufactured fruit juices as part of efforts to boost agro-processing, support local industries and create employment opportunities.

The proposed removal is contained in broader reforms under the Excise Duty Bill, which seek to improve tax efficiency, address revenue leakages and provide relief for domestic manufacturers.

Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, Dr Forson said abolishing the levy on locally produced fruit juices would reduce operational pressures on manufacturers and encourage expansion within the agro-processing sector.

He explained that the government’s review of the excise duty regime was prompted by concerns over weaknesses in the collection of taxes on some products, particularly imported wine and spirits.

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

As part of the reforms, government plans to introduce a hybrid excise duty system that combines value-based and quantity-based taxation for wines and spirits. The move is aimed at tackling undervaluation and the misclassification of imported products.

Dr Forson further announced that the government would review the existing sliding-scale excise rates applied to beer and stout products while strengthening enforcement measures.

The new compliance measures will include mandatory electronic registration of stockists, the introduction of a nationwide track-and-trace system and tougher sanctions for businesses that violate excise regulations.

The Finance Minister said the reforms are designed to establish a more effective excise duty framework that supports local enterprises while ensuring government receives the appropriate revenue from taxable goods.

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