The Food and Beverages Association of Ghana (FABAG) has expressed gratitude to Finance Minister Dr. Cassiel Ato Forson for removing the 20% excise duty on locally manufactured fruit juices. This decision was made in response to long-standing concerns from the industry, which argued that the tax, introduced in 2023, made local products less competitive compared to imported alternatives. The Association believes this move will provide relief to manufacturers and strengthen the local industry.
At a meeting with Dr. Forson, FABAG's Chairman, Rev. John Awuni, commended the Minister for his responsiveness to industry concerns. Awuni noted that the decision demonstrated Dr. Forson's willingness to take decisive action to support local fruit juice producers. The Chairman also thanked the Minister on behalf of the Association, highlighting that fruit juice manufacturers had campaigned for the removal of the tax for several years.
The 20% excise duty on locally manufactured fruit juices was abolished as part of the 2026 Mid-Year Budget Review. Dr. Forson announced the planned removal during the presentation, committing the government to eliminating the duty. This commitment has since been reflected in legislation, with the policy taking effect on October 1, 2026, following Parliament's passage of the new Excise Duty Act and presidential assent.
The removal of the excise duty is expected to create greater opportunities for the use of locally produced fruits and provide relief to fruit juice manufacturers. FABAG believes that this move will strengthen the local industry and make it more competitive. The Association also urged the government to work with the industry to identify practical ways to address food gluts and bring relief to farmers.
Dr. Forson also encouraged FABAG to collaborate with the government to find solutions to food gluts and provide relief to farmers. The Minister's initiative aims to boost local production and create jobs. By working together, the government and the Association hope to address key challenges facing the industry and promote sustainable growth.
The Food and Beverages Association of Ghana represents the interests of various stakeholders in the food and beverages sector. The Association's commendation of Dr. Forson reflects the positive impact of his decision on the industry. The removal of the excise duty is seen as a significant step towards promoting local production and supporting small businesses.
The policy change is expected to have a positive impact on Ghana's economy, particularly in the food and beverages sector. With the removal of the excise duty, local fruit juice manufacturers are likely to experience reduced production costs and increased competitiveness. This, in turn, may lead to increased production, job creation, and economic growth.
Key points
- The Food and Beverages Association of Ghana commends Finance Minister Dr. Cassiel Ato Forson for removing the 20% excise duty on locally manufactured fruit juices.
