The Ghanaian government has abolished the 20 percent excise duty on locally manufactured fruit juices. This duty was initially introduced in 2023. The decision aims to support agro-processing and boost the local industry.
This move is expected to ease the tax burden on domestic manufacturers. It will also encourage investment and create jobs across the agricultural value chain. The Finance Minister, Dr. Cassiel Ato Forson, announced this during the 2026 Mid-Year Budget review in Parliament.
This policy change fits into Ghana's broader economic strategy to foster local production and improve revenue collection. The government has been working to balance tax incentives for local industries with the need for robust public finances. This action reflects a commitment to industrial expansion, a key component of Ghana's long-term development goals.
Dr. Forson stated that the removal of the excise duty on locally produced fruit juices provides relief to processors. It also stimulates growth in the agro-processing sector. He affirmed the government's commitment to implementing tax policies that support industrial expansion. These policies also aim to ensure a fair and efficient revenue system.
The government also identified significant weaknesses in the country’s excise duty regime. This is particularly true for the taxation of imported wines and spirits. Between 2023 and 2025, imports of wines and spirits with a taxable value exceeding GHS 5 billion entered the country. Approximately 78 percent of this amount, valued at nearly GHS 4 billion, avoided excise duty. This occurred through customs procedures like warehousing and free zones.
Dr. Forson described this situation as unsustainable. He noted that almost four out of every five cedis of potential excise tax on wines and spirits escaped the tax net. To address this, the government will introduce a hybrid excise duty system. This system will combine value-based and quantity-based taxation for wines and spirits. This approach will eliminate undervaluation and product misclassification. It will also ensure a minimum tax payment regardless of declared values.
The minister also announced a review of the existing sliding-scale excise duty rates on beer and stout. This review will align with revenue objectives. It will also maintain incentives for local manufacturers. These measures are part of the broader reforms under the Excise Duty Bill currently before Parliament. The bill seeks to improve revenue mobilisation and strengthen tax compliance.
On customs administration, Dr. Forson highlighted gains from the Publican AI Trade Solution. This system was deployed in March this year. It aims to improve import valuation and enhance revenue collection. The system has strengthened Customs' ability to detect undervalued imports and identify high-risk declarations. From its pilot phase to full rollout, the system increased assessed customs collections by more than US$300 million. This represents a 17.5 percent increase over originally declared values. About 366,000 import declarations have been analysed, with nearly one in four flagged for valuation risk. This requires further review by Customs officers.