Government to Scrap 20% Excise Duty on Locally Produced Fruit Juice
Finance Minister Dr. Cassiel Ato Forson outlines tax relief for local fruit juice manufacturers alongside tighter excise controls on imported spirits.
- Government abolishes the 20% excise duty on locally produced fruit juices to support agro-processing.
- Analysis reveals 78% of imported wines and spirits between 2023 and 2025 bypassed excise duties via customs loopholes.
- Proposed Excise Duty Bill introduces a combined value- and quantity-based tax model for imported alcohol.
The government has announced plans to abolish the 20 percent excise duty on locally manufactured fruit juices to stimulate agro-processing, drive job creation, and enhance the competitiveness of domestic producers.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, Finance Minister Dr. Cassiel Ato Forson explained that the tax relief will be introduced under the upcoming Excise Duty Bill.
“Government will abolish the payment of 20 percent excise duty on locally manufactured fruit juices introduced in 2023 to support agro-processing and job creation,” Dr. Forson stated.
Restructuring the Excise Tax System
Alongside tax relief for local fruit juice processors, the Finance Minister highlighted severe revenue leakages in the taxation of imported wines and spirits.
An audit of imports between 2023 and 2025 revealed that while over GH¢5 billion worth of wines and spirits entered the country, approximately 78% escaped excise duty by exploiting customs regimes such as transit, warehousing, temporary admission, and free zones.
“In other words, almost four out of every five cedis of the potential excise tax base on wine and spirits escaped the tax net,” Dr. Forson noted. “Only one cedi out of every five was subject to excise duty. That is neither efficient nor sustainable, and it must change.”
To close these loopholes and prevent undervaluation, the proposed Excise Duty Bill will transition wines and spirits to a hybrid tax structure combining value-based and quantity-based assessments.
