Finance Minister Dr Cassiel Ato Forson’s commitment during the 2026 Mid-Year Budget Review to abolish the 20% excise duty on locally manufactured fruit juices has raised hopes of much-needed relief for the industry, with the Food and Beverages Association of Ghana (FABAG) saying it has been informed that the reform will now be implemented.
The relief follows the passage of the new Excise Duty Act by Parliament and its assent by President John Dramani Mahama, giving effect to the government’s commitment to abolish the levy.
The 20% excise duty was introduced in 2023 and applied to fruit juices based on their ex-factory price. The government announced its removal during the 2026 Mid-Year Budget Review as part of efforts to support agro-processing, local manufacturing and job creation.
FABAG, in a statement signed by its Chairman, Rev. John Awuni, commended the government, Parliament and the President for delivering on the policy commitment.
“The fulfilment of this commitment therefore provides welcome relief to an industry that has faced significant challenges since the introduction of the 20% excise tax in 2023,” the Association said.
The Association said the removal of the tax would provide manufacturers with greater room to strengthen production and investment while supporting local value addition across the agricultural and manufacturing value chains.
FABAG also pledged that manufacturers would respond positively to the intervention by expanding their operations and creating more employment opportunities.
“We will ensure that they remain committed to expanding production, creating jobs, increasing investment, strengthening domestic value addition, and contributing their fair share of taxes to national development through full compliance with all applicable tax laws,” the statement said.
The Association said the reform could improve the competitiveness of locally manufactured fruit juices and stimulate economic activity across the wider value chain, including farmers and suppliers of locally produced fruits and other inputs.
The government’s decision comes after concerns from local manufacturers that the excise duty was increasing production costs and placing pressure on the competitiveness of locally produced beverages. The abolition was announced by Finance Minister Dr Cassiel Ato Forson as part of reforms to the excise duty regime.
FABAG said it welcomed the engagement between government and industry on the implementation of the new Excise Duty Act and indicated that manufacturers had been informed that the reform is expected to take effect from October 1, 2026.
The Association said it is prepared to work with the government and the Ghana Revenue Authority to ensure a smooth implementation of the new regime.
