Accra: The Food and Beverages Association of Ghana (FABAG) has welcomed the government's decision to abolish the 20% excise duty on locally manufactured fruit juices. The association noted that the removal of the tax would provide much-needed relief to fruit juice manufacturers who have been grappling with increased costs and other challenges since the tax was implemented in 2023.
According to Ghana Web, FABAG issued a press statement on September 10, 2026, commending the Minister of Finance, Parliament, and President John Dramani Mahama for keeping their promise as announced in the 2026 Mid-Year Budget Review. The Minister of Finance had stated during the budget review, "We will abolish the payment of the 20% excise duty on locally manufactured fruit juice that was introduced in 2023."
FABAG highlighted that this commitment has now been actualized in the new Excise Duty Act, which has been passed by Parliament and signed into law by the President. The association believes that this policy change could foster expansion in production, attract more investment, and generate additional employment opportunities within the sector.
The association further explained that the removal of the tax would enhance the competitiveness of locally produced fruit juices and align with the government's 24-hour economy agenda. "We strongly commend the NDC government, especially the Hon. Minister of Finance, for listening to the concerns of players in this industry and for recognizing the important contribution of fruit juice manufacturers to local value addition, manufacturing, employment creation, and economic growth, while also supporting the successful implementation of the 24-hour economy agenda," FABAG stated.
FABAG also revealed that the new tax regime is expected to come into effect on October 1, 2026, following a stakeholder engagement between the government and industry players on September 4. The association acknowledged that although further measures are needed to enhance the competitiveness of Ghana's food and beverage industry, the elimination of the 20% excise duty signifies a significant step towards bolstering local manufacturing and economic growth.