Government’s decision to abolish a 20% excise duty on locally manufactured fruit juices could lift demand for domestically grown fruits, improve incomes for farmers and provide relief to small-scale juice processors that have struggled since the levy was introduced in 2023.
Finance Minister Cassiel Ato Forson announced in the 2026 Mid-Year Budget Review that the government will scrap the tax to support agro-processing and job creation as part of broader reforms to the country’s excise duty regime.
The measure is expected to reduce production costs for juice manufacturers, allowing them to expand output and purchase more pineapples, mangoes, oranges and other fruits from local growers. Increased processing could strengthen demand across agricultural value chains while reducing post-harvest losses, particularly during peak harvest seasons.
The repeal could also improve the prospects of hundreds of small and medium-sized enterprises producing fresh fruit juices for domestic consumers. Lower tax costs are expected to make locally produced beverages more competitive, encouraging investment and expansion in a sector that supports jobs in farming, transportation, packaging and retail.
Industry groups have argued that the excise duty sharply reduced production and sales, forcing processors to cut capacity and scale back purchases from farmers. Some manufacturers reported sales falling by more than half after the tax was introduced, while factory utilization dropped significantly.
In February this year, the Chamber of Agribusiness Ghana (CAG) warned that the levy weakened demand for fruits grown by tens of thousands of farming households and left processors operating well below efficient capacity, affecting employment throughout the agricultural value chain.
In December 2025 the chamber cautioned that the 20% excise duty on natural fruit juices could result in Ghana losing up to $1.7 billion in annual export earnings and more than 120,000 jobs if it is not urgently reviewed, highlitng that global demand for natural fruit juices is rising, presenting a major opportunity for Ghana to expand exports to markets across Africa, Europe, the Middle East, and North America.
By lowering the tax burden, the government is seeking to encourage more domestic value addition rather than the sale of raw agricultural produce. Higher local processing could also help Ghana substitute imports with locally manufactured beverages while creating a more reliable market for fruit farmers.
The tax repeal forms part of the government’s broader strategy to promote agro-industrialization and employment by making local manufacturers more competitive.
