Parliament passes Excise Bill 2026, removes tax on locally made fruit juices
Parliament has passed the Excise Bill, 2026, introducing changes to the country’s excise tax system.
One of the major changes under the new law is the removal of excise taxes on fruit juices made locally in Ghana.
The move is expected to help reduce the prices of locally produced fruit juices and make them more affordable for consumers.
The government also believes the change could encourage more people to choose fruit juices instead of alcoholic drinks.
At the same time, the new policy is expected to support Ghana’s agro-processing industry and create more opportunities for local farmers who grow fruits for processing.
The passage of the Bill is therefore being seen as part of efforts to support local businesses, encourage the use of Ghanaian raw materials and promote healthier choices among consumers.
Parliament Approves New Excise Tax Law
The Excise Bill, 2026, was passed by Parliament as part of efforts to create a clear legal system for the imposition and collection of excise duty.
Excise duty is a type of tax placed on certain products. The new law covers selected imported and locally manufactured goods that are classified as excisable products.
The legislation also provides for the use of Excise Tax Stamps.
These stamps are expected to be placed on products that are subject to excise duty.
The system is intended to help authorities identify products that have been properly taxed and ensure that businesses follow the rules relating to excise taxes.
The new law also introduces changes that are expected to affect manufacturers of beverages and other products.
Government Introduces Sliding Excise Duty System
Presenting the Bill in Parliament on Tuesday, July 28, Deputy Finance Minister Thomas Nyarko Ampem explained some of the key changes contained in the legislation.
He said the new law introduces a sliding scale for excise duty on beer and other beverages.
The purpose of this system is to encourage manufacturers to use more raw materials produced in Ghana.
Under the new arrangement, companies that use a greater amount of locally sourced materials in their production will benefit from lower excise duty rates.
This means manufacturers who buy more of their raw materials from Ghanaian farmers and local suppliers could pay less in excise duty.
The government believes this approach will encourage businesses to increase their use of locally produced materials.
Explaining the policy to Parliament, Mr Ampem said:
“The more raw materials you source locally to produce, the rate of excise duty goes down,” he told Parliament.
The government hopes that this system will encourage manufacturers to build stronger relationships with local farmers and suppliers.
Locally Made Fruit Juices to Become More Affordable
One of the biggest changes under the Excise Bill, 2026, is the removal of excise taxes on locally manufactured fruit juices.
The government believes this will help bring down the prices of these products.
If locally made fruit juices become more affordable, more consumers may be encouraged to buy them.
The policy is also expected to support companies involved in fruit processing and create more demand for locally grown fruits.
Deputy Finance Minister Thomas Nyarko Ampem said the removal of the tax would help strengthen the local fruit processing industry.
He explained that businesses such as Blue Skies and the Akumfi Juice Factory could benefit from the tax exemption.
The government believes these companies and other local producers will be in a better position to compete in the market.
The policy could also encourage more people to choose fruit juices instead of alcoholic beverages.
Boost for Ghana’s Agro-Processing Industry
The government sees the new excise tax policy as an important step toward developing Ghana’s agro-processing sector.
Agro-processing involves turning farm products into finished or partly finished goods.
For example, fruits grown by Ghanaian farmers can be processed into fruit juices and other products.
When more companies buy fruits from local farmers, it can create a stronger market for agricultural products.
This could help farmers earn more income and encourage more people to invest in farming.
The government expects the removal of excise taxes on locally produced fruit juices to increase demand for these products.
As demand increases, local juice producers may need more fruits and other materials from Ghanaian farmers.
This could create a stronger connection between the agricultural sector and the manufacturing industry.
Policy Could Benefit Local Farmers
Ghana has many farmers who produce fruits such as mangoes, pineapples, oranges and other crops.
However, farmers sometimes face difficulties finding reliable markets for their produce.
When there is a strong local processing industry, farmers may have more opportunities to sell their products.
The government believes the new policy could help create such opportunities.
If juice companies increase production because their products are more competitive, they may also need to buy more fruits locally.
This could benefit farmers and other people who work within the agricultural supply chain.
The policy may also help reduce the amount of locally grown fruit that goes to waste when farmers cannot find enough buyers.
By encouraging local processing, more farm products can be turned into finished goods and sold to consumers.
Encouraging Healthier Consumer Choices
Another important reason behind the policy is the government’s desire to encourage healthier consumption.
By removing excise taxes from locally produced fruit juices, the government hopes to make these products more affordable.
This could give consumers more options when choosing what to drink.
The government believes that if fruit juices are competitively priced, some consumers may choose them instead of alcoholic beverages.
The policy is therefore expected to support both the local economy and efforts to encourage healthier choices.
However, the success of the measure will depend on how much of the tax savings are passed on to consumers through lower prices.
Supporting Local Manufacturing
The Excise Bill, 2026, also forms part of the government’s wider plans to support local industries.
The government wants manufacturers to use more locally sourced materials and add value to products within Ghana.
Instead of exporting raw materials without processing them, the policy is aimed at encouraging businesses to process more products locally.
This can create jobs and increase economic activity.
For example, when fruits are grown by Ghanaian farmers and processed into juice by local companies, more value is created within the country.
The process can support farmers, factory workers, transport operators, packaging companies and other businesses involved in the supply chain.
New Tax Rules Aim to Encourage Local Production
The revised excise duty system is also designed to give manufacturers an incentive to increase their use of local raw materials.
Companies that depend more on materials produced in Ghana could benefit from lower excise duty rates.
This means businesses have a financial reason to look for local suppliers rather than depending heavily on imported materials.
The government hopes the approach will encourage more companies to support Ghanaian farmers and local producers.
Over time, this could help build stronger industries that depend on local resources.
A Broader Tax Reform Agenda
The Excise Bill, 2026, is part of the government’s broader tax reform programme.
The reforms are aimed at supporting local businesses, encouraging value addition and creating incentives for companies that use Ghanaian raw materials.
The government also wants the tax system to support economic growth and create opportunities for local industries.
By removing excise taxes from locally manufactured fruit juices, the government expects to make the products more competitive.
At the same time, the sliding excise duty system for beverages is intended to encourage manufacturers to buy more raw materials from local suppliers.
What the New Law Could Mean for Ghanaians
The new law could have several effects on consumers and businesses.
For consumers, locally produced fruit juices could become more affordable if companies pass the benefit of the tax exemption on to customers.
For manufacturers, the new system could provide incentives to use more local raw materials.
For farmers, increased demand from food and beverage companies could create more reliable markets for their produce.
For the wider economy, the government expects the policy to encourage local production, create jobs and strengthen the connection between farming and manufacturing.
The policy could therefore benefit several parts of the economy if it is properly implemented.
