The government has announced plans to abolish the 20 per cent excise duty on locally manufactured fruit juices as part of sweeping tax reforms aimed at boosting agro-processing, supporting local industries and creating jobs.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, Finance Minister Dr. Cassiel Ato Forson said the measure is contained in the proposed Excise Duty Bill, which seeks to strengthen tax administration, plug revenue leakages and promote domestic production.
According to the Minister, the government will remove the 20 per cent excise duty imposed on locally manufactured fruit juices in 2023 to stimulate investment in agro-processing and enhance employment opportunities across the agricultural value chain.
“The government will abolish the payment of the 20 per cent excise duty on locally manufactured fruit juices introduced in 2023 to support agro-processing and job creation,” Dr. Forson told Parliament.
The tax relief is expected to reduce production costs for local manufacturers, improve the competitiveness of domestically processed fruit juices and encourage greater value addition within Ghana’s agricultural sector.
In addition to the proposed tax relief, Dr. Forson highlighted major shortcomings in the country’s excise duty regime, particularly in the taxation of imported wines and spirits.
He revealed that between 2023 and 2025, wines and spirits with a taxable value exceeding GH¢5 billion entered the country. However, approximately 78 per cent of that value passed through customs under regimes such as warehousing, transit, temporary admission and free zones without attracting excise duty.
According to the Finance Minister, this meant that nearly four out of every five cedis of the potential excise tax base on wines and spirits escaped taxation, leaving only about one-fifth subject to excise duty.
Describing the situation as inefficient and unsustainable, he said the government is proposing a hybrid excise tax model that combines value-based and quantity-based taxation for wines and spirits to curb undervaluation, reduce misclassification and improve revenue collection.
The reforms form part of the government’s broader strategy to strengthen domestic revenue mobilisation while creating a more supportive environment for local manufacturing and industrial growth.
