The Chamber of Agribusiness Ghana (CAG) has warned that the 20 per cent excise duty on natural fruit juices is severely undermining Ghana’s agro-processing sector, threatening up to 127,000 jobs, farmer livelihoods and a potential annual export market valued at about US$1 billion.
In a technical analysis released, the Chamber said the tax introduced as a public health measure has instead penalised nutritious, locally produced juices while favouring cheaper artificial beverages and imported concentrates. As a result, juice processing factories are operating at just 30–45 per cent capacity, down from an optimal 70–85 per cent, reducing demand for locally grown fruits such as pineapples, oranges, coconuts and mangoes.
20% Excise Duty on Natural Juices Threatens Jobs
CAG Chief Executive Officer Anthony Morrison said the policy has led to falling farm-gate prices, post-harvest losses and rising rural poverty, particularly in the Eastern, Volta and Central regions, where fruit processing supports thousands of households, many of them women.
The Chamber also noted that Ghana’s approach contradicts international best practices, as many countries with sugar-sweetened beverage taxes exempt 100 per cent natural fruit juices to protect agriculture and promote healthier consumption. According to CAG, the duty has weakened Ghana’s export competitiveness, discouraged investment, increased reliance on imports and undermined import-substitution efforts.
CAG is therefore calling on government to urgently exempt 100 per cent natural fruit juices from the excise duty, while maintaining higher taxes on genuinely unhealthy beverages with added sugars, to protect jobs, boost exports and align fiscal policy with public health and industrial development goals.
