Audio By Carbonatix
The government has announced plans to abolish the 20 per cent excise duty on locally manufactured fruit juices as part of a broader package of tax reforms aimed at supporting agro-processing, creating jobs and strengthening domestic industry.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, the Finance Minister, Dr Cassiel Ato Forson, said the measure forms part of reforms under the proposed Excise Duty Bill, which seeks to improve tax administration, close revenue leakages and promote local production.
Among the key reforms, Dr Forson said the government would "abolish the payment of 20 percent excise duty on locally manufactured fruit juices introduced in 2023."
He explained that the decision is intended "to support agro-processing and job creation."
The announcement comes as the government seeks to encourage value addition in the agricultural sector by reducing the tax burden on local manufacturers and making locally processed products more competitive.
Beyond the fruit juice tax relief, the Finance Minister said the government had identified significant weaknesses in the country's excise tax system, particularly in the taxation of wines and spirits.
He disclosed that an analysis of imports between 2023 and 2025 showed that wines and spirits with a taxable value of more than GH¢5 billion entered the country, but about 78 per cent of that value passed through customs procedures such as warehousing, transit, temporary admission and free zones without attracting excise duty.
"In other words, almost four out of every five cedis of the potential excise tax base on wine and spirits escaped the tax net," he said.
"Only one cedi out of every five was subject to excise duty. That is neither efficient nor sustainable, and it must change."
To address the problem, the Minister said the Excise Duty Bill proposes a hybrid tax system that combines value-based and quantity-based taxation for wines and spirits to reduce undervaluation and misclassification.
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