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Parliament passes Excise Bill, scraps tax on locally produced fruit juices

Parliament has passed the Excise Bill, 2026, removing excise taxes on locally manufactured fruit juices as part of a broader tax reform programme aimed at lowering consumer prices, promoting healthier diets and boosting the country’s agro-processing sector.

The legislation establishes a legal framework for the imposition and collection of excise duty on selected imported and locally manufactured excisable goods while requiring the use of Excise Tax Stamps on taxable products.

Presenting the bill to Parliament on Tuesday, Deputy Finance Minister Thomas Nyarko Ampem said the new law introduces a sliding-scale excise duty system for beer and other beverages to encourage manufacturers to increase the use of locally sourced raw materials.

“The more raw materials you source locally to produce, the rate of excise duty goes down,” Ampem told lawmakers, adding that the measure is intended to strengthen domestic supply chains and support local producers.

He said the government had also eliminated excise taxes on locally produced fruit juices, a move expected to reduce retail prices and encourage consumers to choose healthier beverages.

“We are removing taxes on local juices produced here, so companies such as Blue Skies and the Akumfi Juice Factory will be zero-rated. That will bring prices down and encourage a shift from alcohol consumption to fruit juices because we want to promote good health,” Ampem said.

The government expects the tax changes to improve the competitiveness of locally manufactured fruit juices, increase demand for products made from locally grown fruits and deepen linkages between Ghana’s agricultural and manufacturing sectors.

Officials also say the revised excise duty regime will reward manufacturers that rely more heavily on domestic inputs by lowering their tax burden, creating incentives for greater local sourcing.

The Excise Bill, 2026, forms part of the government’s wider tax reform agenda aimed at supporting local industries, promoting value addition and encouraging healthier consumer choices following its approval by Parliament.

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