Local fruit juice manufacturers in Ghana are facing crisis as the excise duty on their products continues to erode profits, making some businesses collapse.
According to the Fruit Juice Manufacturers Association of Ghana (FABAG), the excise duty, which was introduced as part of the government’s revenue mobilization strategy has made locally produced fruit juices expensive.
This was contained in a statement signed by the Executive Secretary of FABAG, Mr Andrew Awuni.
The statement said the introduction and imposition of the obnoxious excise tax on sweetened and fruit drinks under Excise Duty (Amendments) Act 2023 (Act 1093) especially on locally produced fruit juices and sweetened beverages has had a devastating negative effect on local manufacturing.
“This has had a multiplier effect on employment levels, sales turnover, working capital and international market competitiveness of Ghanaian fruit juices and sweetened beverages,” it added.
He argued that removing the excise duty will encourage investment in the fruit processing industry, create jobs, and reduce Ghana’s reliance on imported juices, which drained foreign exchange reserves.
Awuni urged government to reconsider the policy and introduce measures that support local manufacturers instead of stifling them.
