FABAG welcomes removal of 20% excise tax

The Food and Beverages Association of Ghana (FABAG) has welcomed the government’s decision to abolish the 20% excise duty on locally manufactured fruit juices.

The association said the removal of the tax would provide relief to fruit juice manufacturers who have faced increased costs and other challenges since the tax was introduced in 2023.

In a press statement released on September 10, 2026, FABAG commended the Minister of Finance, Parliament and President John Dramani Mahama for fulfilling the commitment announced in the 2026 Mid-Year Budget Review.

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“We will abolish the payment of the 20% excise duty on locally manufactured fruit juice that was introduced in 2023,” the Minister of Finance stated during the budget review.

FABAG said the commitment had now been reflected in the new Excise Duty Act, which has been passed by Parliament and assented to by the President.

The association said the policy could help manufacturers expand production, attract more investment and create additional jobs in the sector.

According to FABAG, the removal of the tax would also improve the competitiveness of locally produced fruit juices and support the government’s 24-hour economy agenda.

“We strongly commend the NDC government, especially the Hon. Minister of Finance, for listening to the concerns of players in this industry and for recognising the important contribution of fruit juice manufacturers to local value addition, manufacturing, employment creation and economic growth, while also supporting the successful implementation of the 24-hour economy agenda,” it stated.

FABAG also disclosed that the new tax regime is expected to take effect from October 1, 2026, following a stakeholder engagement between the government and industry players on September 4.

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FABAG said although more measures were needed to improve the competitiveness of Ghana’s food and beverage industry, the removal of the 20% excise duty was an important step towards strengthening local manufacturing and economic growth.

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