The Food and Beverages Association of Ghana (FABAG) has described the abolition of the 20 per cent excise duty on locally manufactured fruit juices as a major relief to manufacturers who have faced challenges since the tax was introduced in 2023.
The association explained that the new Excise Duty Act, passed by Parliament and assented to by the President, would improve the competitiveness of the fruit juice industry and stimulate further investment.
It said the new regime, expected to take effect from October 1, 2026, would enable manufacturers to expand production, create jobs and strengthen domestic value addition.
FABAG further pledged to work with the government and the Ghana Revenue Authority (GRA) to ensure a smooth implementation of the new regime and compliance with applicable tax laws.
In a letter to the Minister of Finance on Thursday, September 10, signed by the association’s Chairman, Rev. John Awuni, FABAG described the reform as a major relief for an industry.
Successful implementation
The chairman stated that the association was looking forward to the commencement of the new regime and was ready to work closely with the government and the GRA.
“We assure the minister that players in this industry will respond positively to this intervention.
“We will ensure that they remain committed to expanding production, creating jobs, increasing investment, strengthening domestic value addition and contributing their fair share of taxes to national development through full compliance with all applicable tax laws,” he said in the letter.
Reform to boost production
The association said the policy measure would strengthen the fruit juice industry, improve its competitiveness, stimulate investment and contribute to increased economic activity and revenue generation through other taxes paid by industry players.
It, however, stated that more needed to be done by the government to improve the competitiveness of the food and beverages sector and the private sector generally.
FABAG expressed appreciation to the Minister of Finance, Parliament and the President for delivering on the commitment to abolish the 20 per cent excise duty.
It said it looked forward to working with all stakeholders to translate the benefits of the reform into increased production, investment, employment creation and sustainable growth in the fruit juice manufacturing sector.
FABAG said the abolition of the duty demonstrated the government’s responsiveness to concerns raised by manufacturers and its recognition of the sector’s contribution to the economy.
The association added that the measure would support the implementation of the government’s 24-hour economy agenda by encouraging increased production and investment in the sector.
