Finance Minister Dr Cassiel Ato Forson has announced that the government will scrap the 20 per cent excise duty tax on 100 per cent natural fruit juices.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, 2026, the Minister explained that the decision follows a comprehensive evaluation of tax law amendments aimed at removing distortive levies that harm local manufacturing while preserving fiscal stability.
The tax was originally enacted under the Excise Duty (Amendment) Act, 2023 (Act 1093).
However, major industry bodies—including the Association of Ghana Industries (AGI), the Ghana Federation of Labour (GFL), and the Chamber of Agribusiness Ghana (CAG)—petitioned the government for an immediate review or complete exemption.
The associations argued that taxing 100 per cent natural fruit juices unfairly penalises local processors—forcing factories to operate at a diminished 30 to 45 per cent capacity—and jeopardises the livelihoods of over 120,000 farming households.
Stakeholders highlighted that while taxing sugar-sweetened beverages (SSBs) serves as a public health intervention, natural fruit juices processed locally should be exempt to protect jobs, reduce post-harvest losses, and keep local producers competitive against cheap imports.
Dr Forson noted that since taking office, the administration has consistently removed nuisance taxes to support local business growth.
He added that a new Excise Duty Bill currently before Parliament introduces broader structural reforms to plug revenue leakages.
”The excise duty bill before this house introduced a comprehensive package of reforms to close these leakages. Mister speaker, we will crack down this leakage,” he stated.
Outlining the broader tax strategy, the Minister added that the proposed framework will feature a hybrid tax model for alcoholic beverages to eliminate undervaluation.
”Right honourable speaker, specifically government will introduce a high-breed excise system combining value-based and quantity-based taxation for wines and spirits to eliminate persistent undervaluation and misclassification and ensure a minimum level of tax is paid regardless of the declared value,” Dr Forson explained.
He stated that the decision to scrap the 20 per cent excise duty on locally manufactured fruit juices was aimed at supporting agro-processing and job creation.
