Agribusiness Chamber cautions Against 20% excise duty on local fruit juices

The Chamber of Agribusiness Ghana (CAG) has cautioned that the imposition of a 20 per cent excise duty on natural fruit juices threatens Ghana’s agro-industrialisation drive and risks undermining the government’s flagship 24-Hour Economy policy.

In a statement issued on December 15, 2025, the Chamber said the tax is discouraging local processing, weakening value addition, and forcing agro-processing factories to operate below capacity. According to CAG, this runs counter to national efforts aimed at boosting industrial output, creating jobs, and enhancing export competitiveness.

The Chamber explained that the excise duty, which applies to locally processed natural fruit juices, has significantly increased production costs for manufacturers, reducing their ability to compete with imported beverage concentrates and finished products.

CAG argued that rather than incentivising domestic agro-processing, the policy penalises local value addition and sends negative signals to investors across the agricultural value chain.

“This tax contradicts Ghana’s agro-industrialisation objectives and directly undermines the 24-Hour Economy by making continuous production unviable for local processors,” the statement noted.

The Chamber further highlighted that agro-processing is among the most labour-intensive sectors of the economy and a key source of rural employment, particularly for youth and women. It warned that prolonged pressure on juice manufacturers could result in factory closures, reduced demand for raw agricultural produce, and widespread job losses throughout the value chain.

CAG also cautioned that the excise duty weakens Ghana’s import-substitution strategy by making locally produced juices more expensive than imported alternatives, thereby increasing foreign exchange demand and placing additional pressure on the Cedi.

While acknowledging Ghana’s strong potential to become a regional hub for fruit processing—given its production of pineapple, mango, citrus, and other tropical fruits—the Chamber stressed that such potential cannot be realised under a tax regime that discourages investment in local processing.

CAG has therefore called on the government to review and repeal the 20 per cent excise duty, urging policymakers to ensure that tax measures are aligned with national development priorities, including industrial growth, job creation, and economic resilience.