The Food and Beverages Association of Ghana (FABAG) has welcomed the abolition of the 20% excise duty on locally manufactured fruit juices.

The Association says the new regime is expected to take effect from October 1, 2026, following the passage of the new Excise Duty Act by Parliament and its assent by President John Mahama.

In a letter to the Finance Minister on Thursday, FABAG described the reform as a major relief for an industry that has faced significant challenges since the 20% excise tax was introduced in 2023.

The Association commended the Finance Minister, Parliament and the President for delivering on the commitment to abolish the tax.

During the presentation of the 2026 Mid-Year Budget Review, the Finance Minister stated: “Mr Speaker, we will abolish the payment of the 20% excise duty on locally manufactured fruit that was introduced in 2023”.

FABAG said the commitment has now been reflected in the new Excise Duty Act.

It also acknowledged Members of Parliament for their support in ensuring the passage of what it described as an important reform.

The Association said the removal of the tax would support local value addition, manufacturing, employment creation and economic growth.

It also linked the measure to the implementation of the government’s 24-hour economy agenda.

FABAG said industry stakeholders were informed at a meeting with government on Friday, September 4, that implementation of the reform was expected to begin on October 1.

“We look forward to the commencement of the new regime and stand ready to work closely with Government and the Ghana Revenue Authority to ensure a smooth and successful implementation,” the Association said.

It assured the Finance Minister that fruit juice manufacturers would respond positively to the intervention.

FABAG said manufacturers would remain committed to expanding production, creating jobs, increasing investment and strengthening domestic value addition.

The Association also pledged to contribute its fair share of taxes to national development by fully complying with applicable tax laws.

“We believe that this policy measure will strengthen the fruit juice industry, improve competitiveness, stimulate further investment, contribute to increased economic activity, and support revenue generation through the broad range of taxes paid by industry,” FABAG said.

The Association, however, noted that more needs to be done to improve the competitiveness of the food and beverages sector and the private sector generally.

It nonetheless described the removal of the excise duty as a significant initiative and expressed its gratitude to the Finance Minister, Parliament and the President.