Finance Minister Dr. Cassiel Ato Forson has announced plans to abolish the 20% excise duty imposed on locally manufactured fruit juices, introduced in 2023, as part of measures to support agro-processing and promote job creation.
The decision forms part of broader reforms under the Excise Duty Bill aimed at improving efficiency in the tax system, closing revenue leakages and supporting local industries.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, Ato Forson said the removal of the excise duty on locally produced fruit juices is expected to reduce pressure on manufacturers and encourage growth within the agro-processing sector.
He explained that government’s review of excise duties was informed by concerns over inefficiencies in the collection of taxes on certain products, particularly wine and spirits.
“Analysis of wine and spirit imports between 2023 and 2025 shows a taxable value of over GH¢5 billion. However, about 78%, worth nearly GH¢4 billion, entered customs procedures such as warehousing, transit, temporary admission and free zones without attracting excise duty,” he added.
Under the new reforms, government will introduce a hybrid excise system combining value-based and quantity-based taxation for wines and spirits to address undervaluation and misclassification of imported products.
The minister again stated that government will also review the existing sliding-scale excise rates for beer and stout products, while strengthening compliance through mandatory electronic registration of stockists, a nationwide track-and-trace system and stricter penalties for violations.
Dr. Forson said the reforms are intended to create a more efficient excise regime while protecting local businesses and ensuring that government receives the appropriate revenue from taxable products.
