Parliament has approved zero excise duty on locally manufactured fruit juices, a move aimed at lowering prices and supporting Ghana’s agro-processing industry.

The new legislation provides a framework for assessing and collecting excise duty on selected imported and locally manufactured excisable goods while maintaining the mandatory use of Excise Tax Stamps to improve compliance and revenue administration.

Presenting the Bill, Deputy Finance Minister Thomas Nyarko Ampem said the reforms introduce an incentive-based excise system for beer and other beverages, where tax rates will depend on the level of locally sourced raw materials used in production.

“The other thing we are seeking to do is to introduce a sliding scale for use of raw materials so that we can encourage the use of local raw materials in the manufacture of beer and other drinks so that the more raw materials you source locally to produce, the rate of excise duty goes down,” he said.

Mr Ampem explained that the policy is designed to encourage manufacturers to rely more on Ghanaian agricultural products while reducing dependence on imported production inputs.

He added that locally manufactured fruit juices will no longer attract excise duty, a measure expected to reduce prices and increase consumer access to locally produced alternatives.

“We are removing taxes on juices, local juices that are produced here, and so our Blue Skies, our Akumfi juice factory, will all be zero-rated, and that will bring the prices low, and it will encourage us to shift from the consumption of alcohol to fruit juices because we want to promote good health,” Mr Ampem stated.

The government expects the tax exemption to improve the competitiveness of local fruit juice producers, create stronger links between farmers and processors, and increase demand for fruits cultivated in Ghana.

Under the new sliding-scale arrangement, manufacturers that use a higher proportion of locally sourced materials will benefit from lower excise duty rates, creating an incentive for greater local value addition.

The Excise Bill, 2026, forms part of government’s wider fiscal reform agenda focused on industrial growth, job creation, support for local industries and the use of tax policy to encourage healthier lifestyle choices.