The Chamber of Agribusiness Ghana (CAG) has cautioned that the 20% excise duty on natural fruit juices could result in Ghana losing up to $1.7 billion in annual export earnings and more than 120,000 jobs if it is not urgently reviewed.

In a statement released on Monday, December 15, the Chamber said the tax has made locally processed fruit juices uncompetitive in both domestic and international markets, discouraging investment in agro-processing and limiting Ghana’s export potential.

CAG highlighted that global demand for natural fruit juices is rising, presenting a major opportunity for Ghana to expand exports to markets across Africa, Europe, the Middle East, and North America.

Yet, the current tax regime, the Chamber warned, is preventing local producers from capitalising on these opportunities.

The excise duty has increased production costs for local manufacturers, forcing some factories to scale back operations and others to abandon export plans.

CAG noted that this policy is also undermining Ghana’s import substitution efforts, encouraging cheaper imported concentrates and finished beverages, and causing annual foreign exchange losses estimated between $350 million and $450 million.

Beyond export losses, the Chamber emphasised the tax’s impact on employment, affecting farmers, processors, transporters, and distributors, with youth and women disproportionately affected.

CAG urged the government to scrap or significantly revise the excise duty to support value addition, boost exports, and protect jobs, while signalling its readiness to collaborate with authorities to strengthen Ghana’s agro-processing sector.