The decision to abolish the 20% excise duty on locally manufactured fruit juices has been welcomed by fruit growers and processors in Ghana’s Central Region, particularly in Ekumfi and Asebu, who believe it will revive the local fruit processing industry, create jobs, and expand export opportunities. The tax, introduced in 2023, had been widely criticized for increasing production costs and reducing the competitiveness of locally produced fruit beverages against imported products.
Background
During the presentation of the 2026 Mid-Year Budget Review, Finance Minister Dr. Cassiel Ato Forson announced that government would abolish the 20% excise duty on locally manufactured fruit juices. The measure formed part of amendments to the Excise Duty Bill aimed at supporting agro-processing, promoting local manufacturing, and improving the country’s tax regime.
According to the Finance Minister, the abolition is intended to:
- Reduce production costs for local juice manufacturers.
- Stimulate investment in agro-processing.
- Promote industrial expansion.
- Strengthen Ghana’s agricultural value chains.
- Support job creation while maintaining a more efficient revenue system.
Fruit growers welcome the decision
Following the announcement, the Exotic Fruit Growers, Fruit Processors and Associations of Ekumfi and Asebu publicly commended President John Dramani Mahama, Finance Minister Dr. Cassiel Ato Forson, and the Government of Ghana for what they described as a timely intervention for one of Ghana’s most strategic agro-industrial sectors.
The associations explained that over the years, farmers and private investors have committed substantial resources to cultivating:
- Pineapple
- Papaya
- Oranges
- Lemons
- Passion fruit
- Ginger
- Coconut
These investments were made with the expectation of supplying an expanding domestic fruit processing industry. However, the excise duty significantly increased production costs for processors, reducing demand for locally grown fruits and affecting farmers’ incomes.
Expected economic impact
The associations believe abolishing the tax could trigger significant growth across Ghana’s fruit value chain.
They estimate the policy could:
- Create between 60,000 and 150,000 direct and indirect jobs in farming, irrigation, harvesting, aggregation, transport, processing, packaging, manufacturing, logistics, retail and exports.
- Restore investor confidence in commercial fruit farming.
- Encourage expansion of fruit processing factories.
- Increase demand for locally produced fruits.
- Improve incomes for thousands of farmers nationwide.
Reducing imports
Industry leaders also argue that strengthening domestic fruit processing could significantly reduce Ghana’s dependence on imported fruit beverages.
According to figures cited by the associations:
- Ghana imports approximately US$150 million worth of fruit juice annually.
- Local production accounts for only about US$40 million, leaving an import gap of roughly US$110 million.
They believe a competitive local processing industry could eventually save the country more than US$200 million annually through import substitution while retaining more value within the Ghanaian economy.
Export ambitions
The associations also expressed optimism that Ghana could become West Africa’s leading producer and exporter of natural fruit beverages.
They pointed to Ekumfi Fruits and Juices Limited, whose products are already sold through Walmart.com in the United States, as proof that Ghanaian fruit beverages can compete internationally.
They estimate that with sustained policy support, affordable financing, irrigation infrastructure, expanded fruit cultivation and export promotion, Ghana’s fruit processing industry could eventually generate over US$500 million in annual export earnings.
Other tax reforms announced
Alongside the abolition of the fruit juice excise duty, the Finance Minister announced additional reforms to strengthen revenue mobilisation, including:
- A hybrid excise tax system for imported wines and spirits to reduce undervaluation and tax leakage.
- A review of excise rates on beer and stout.
- Continued deployment of the Publican AI Trade Solution to improve customs valuation and revenue collection.
Latest updates
As of the latest available reports:
- The abolition of the 20% excise duty has received widespread support from fruit growers, processors and industry associations.
- Stakeholders are urging government to complement the tax relief with affordable financing, irrigation investments, expanded fruit cultivation programmes and export market development.
- The policy is being viewed as a major step toward revitalising Ghana’s fruit processing industry, increasing local manufacturing and improving rural employment.