The 20 % excise duty on locally manufactured fruit juices was removed on 1 October, a move that industry players say will give fresh impetus to domestic production. The tax, introduced in 2023, had been a major concern for manufacturers, who argued it raised production costs and weakened the competitiveness of Ghanaian fruit juices against imports.
The Food and Beverages Association of Ghana (FABAG) welcomed the change, describing it as a major relief for manufacturers and a sign of the government’s responsiveness to industry concerns. FABAG said the exemption could ease cost pressures and create greater opportunities for the use of locally produced fruits.
The measure is part of the Excise Act, 2026, which consolidates Ghana’s excise duty framework and provides an exemption from excise duty for locally manufactured fruit juices. President John Mahama has described the exemption as an incentive for local production.
Government officials expect the policy to improve the competitiveness of locally manufactured fruit juices, stimulate demand for products made from locally grown fruits and strengthen linkages between agriculture and manufacturing. It also forms part of broader efforts to support agro‑processing and job creation through changes to the excise regime.
For manufacturers, the key expectation is that removing the 20 % duty will reduce the tax burden on production and create room for increased investment, while potentially making locally produced fruit juices more competitive in the market. The impact on consumer prices will depend on how manufacturers and other players across the supply chain pass on the reduction in production costs.
The policy is also expected to encourage manufacturers to increase their use of locally sourced raw materials, potentially creating stronger demand for fruits produced by Ghanaian farmers.
