By Nadia Ntiamoah
Parliament has approved the Excise Bill, 2026, abolishing excise duty on locally manufactured fruit juices in a move government says will make the products more affordable, encourage healthier lifestyles and provide a major boost to the agro-processing industry.
The new legislation forms part of a broader package of tax reforms aimed at promoting local manufacturing, increasing the use of Ghanaian agricultural raw materials and strengthening value addition within the country’s industrial sector.
The Bill, which was approved by Parliament, also establishes a comprehensive legal framework for the assessment and collection of excise duty on selected imported and locally manufactured excisable goods while retaining the mandatory use of Excise Tax Stamps to improve compliance, monitoring and revenue administration.
Presenting the Bill to Parliament, Deputy Finance Minister Thomas Nyarko Ampem said one of the key innovations in the legislation is the introduction of an incentive-based excise tax regime for beer and other beverages.
Under the new system, manufacturers that source a higher proportion of their raw materials locally will enjoy lower excise duty rates, creating a strong incentive to patronise Ghanaian farmers and reduce dependence on imported inputs.
“The other thing we are seeking to do is to introduce a sliding scale for use of raw materials so that we can encourage the use of local raw materials in the manufacture of beer and other drinks so that the more raw materials you source locally to produce, the rate of excise duty goes down,” Ampem told Parliament.
He explained that the policy is expected to stimulate demand for locally grown agricultural produce while supporting domestic industries and creating additional income opportunities for farmers across the country.
The Deputy Minister further announced that all locally manufactured fruit juices would now be exempt from excise duty.According to him, the measure is intended to reduce retail prices, improve the competitiveness of Ghanaian fruit processors and encourage consumers to choose healthier beverages over alcoholic drinks.
“We are removing taxes on juices, local juices that are produced here, and so our Blue Skies, our Akumfi juice factory, will all be zero-rated, and that will bring the prices low, and it will encourage us to shift from the consumption of alcohol to fruit juices because we want to promote good health,” he said.
Government believes the tax relief will strengthen Ghana’s fruit processing industry by creating a larger market for products manufactured from locally cultivated fruits.
The policy is also expected to improve the competitiveness of domestic manufacturers, expand production and deepen value chains linking fruit farmers to processors.
