Finance Minister Dr. Cassiel Ato Forson has unveiled intentions to remove the 20% excise duty on locally produced fruit juices, a measure introduced in 2023. This initiative aims to bolster agro-processing and foster job creation.
The decision is a key element of comprehensive reforms outlined in the Excise Duty Bill, designed to enhance efficiency within the tax system, eliminate revenue leakages, and bolster local industries.
On Thursday, July 23, Ato will present the 2026 Mid-Year Budget Review in Parliament. Forson stated that eliminating the excise duty on locally produced fruit juices is anticipated to alleviate pressure on manufacturers and foster growth in the agro-processing sector.
He detailed that the government’s examination of excise duties was driven by worries regarding inefficiencies in tax collection on specific products, especially wine and spirits.
Analysis of wine and spirit imports from 2023 to 2025 reveals a taxable value exceeding GH¢5 billion. However, approximately 78%, amounting to nearly GH¢4 billion, underwent customs procedures like warehousing, transit, temporary admission, and free zones without incurring excise duty,” he added.
With the implementation of new reforms, the government is set to unveil a hybrid excise system that merges value-based and quantity-based taxation for wines and spirits. This initiative aims to tackle the issues of undervaluation and misclassification of imported products.
The minister reiterated that the government will conduct a review of the current sliding-scale excise rates for beer and stout products. Additionally, there will be an emphasis on enhancing compliance through mandatory electronic registration of stockists, the implementation of a nationwide track-and-trace system, and the introduction of stricter penalties for violations.
Dr. Forson emphasized that the reforms aim to establish a more streamlined excise system, safeguarding local enterprises while ensuring the government secures the necessary revenue from taxable goods.
