Parliament has approved the Excise Duty (Amendment) Bill, 2026, removing the 20% excise tax on locally produced fruit juices.
The decision supports local manufacturers and strengthens Ghana’s agro-processing industry. It also forms part of the government’s tax reforms announced in the 2026 Mid-Year Budget Review.
Finance Minister Dr. Cassiel Ato Forson introduced the bill and defended the policy. He said the tax removal will reduce production costs and encourage investment in local manufacturing.
He added that the reform will improve the competitiveness of Ghanaian fruit juice producers. The government also expects the measure to create jobs and increase demand for locally grown fruits.
Business groups welcomed the amendment. The Association of Ghana Industries (AGI) and the Food and Beverages Association of Ghana (FABAG) had repeatedly called for the tax to be removed.
The groups argued that the levy increased production costs and made local products less competitive. They also said the tax affected sales and discouraged investment in the sector.
Manufacturers believe the amendment will allow companies to expand production and invest in new equipment. They also expect stronger demand for fruits supplied by local farmers.
Agricultural experts share a similar view. They say higher demand from processors could increase income for fruit growers and strengthen the agricultural value chain.
The amendment supports the government’s industrialization agenda. It also encourages businesses to process more agricultural products within Ghana instead of relying on imports.
Economists say tax incentives can stimulate private-sector growth when paired with sound fiscal policies. At the same time, they urge the government to protect public revenue while supporting businesses.
The Excise Duty (Amendment) Bill represents one of several tax measures introduced during the Mid-Year Budget Review. Together, the reforms aim to improve the business environment and promote sustainable economic growth.
Industry players will now watch how the amendment affects prices, production levels and employment. Many expect the policy to strengthen Ghana’s food processing industry over the coming months.
