The government will scrap the 20% excise duty on locally produced fruit juices starting October 1, 2026. Finance Minister Dr Cassiel Ato Forson announced the move during the 2026 Mid-Year Budget Review, and Parliament has since passed the new Excise Duty Act, which the president has assented to.
The Food and Beverages Association of Ghana (FABAG) praised Dr Forson for acting on a long-standing demand from the fruit juice industry. The duty, introduced in 2023, had raised production costs and made local juices less competitive compared to imported brands. Rev John Awuni, chairman of FABAG, told the minister: “It only took you to boldly execute it. We want to commend you sincerely for that.”
Fruit juice manufacturers had campaigned for years to have the tax removed. They argued it put unnecessary pressure on their businesses and hurt the use of locally grown fruits. The association said removing the duty would offer relief to producers, strengthen the industry, and create more opportunities for local fruit farmers.
Dr Forson urged FABAG to cooperate with the government on practical solutions to manage food gluts and help farmers. The excise duty removal is part of broader efforts to support Ghana’s agro-processing sector and boost local production.
FABAG’s positive response reflects a rare moment of alignment between government policy and industry needs. The association thanked Dr Forson for his responsiveness and willingness to take decisive action where previous administrations had stalled.
The excise duty had been a burden since its introduction three years ago. Now that Parliament has made the change official and the president has signed the legislation, the local fruit juice industry will no longer face that added cost from October 2026.
The decision may have wider effects on Ghana’s food and beverage sector by encouraging local sourcing and processing. It also opens the door for closer collaboration between government and producers on managing agricultural supply issues.
For now, the industry is watching closely as the policy takes effect. The removal of the 20% excise duty signals a shift in how the government approaches support for local manufacturers in a sector that employs many and uses Ghana’s fruits.
According to Joy Online.
