FABAG calls for removal of excise tax on fruit juices to revive local industry 

GHANA – The Food and Beverages Association of Ghana (FABAG) has called on Finance Minister Cassiel Ato Forson to eliminate the Excise Tax on fruit juices and other levies introduced by the previous administration.  

The association argues that scrapping these taxes in the first budget of the Mahama administration will be crucial in revitalizing local production and enhancing revenue collection by the Ghana Revenue Authority (GRA). 

In a statement, FABAG criticized the Excise Duty (Amendments) Act 2023 (Act 1093), stating that its imposition on locally produced sweetened and fruit beverages has had a severe impact on the industry.  

The association highlighted job losses, reduced sales, constrained working capital, and weakened competitiveness of Ghanaian fruit juices in international markets as some of the adverse effects. 

“A cost-benefit analysis of the Excise Duty on domestic industry performance since its implementation shows significant economic losses. Sales have plummeted by over 50%, and net revenue to the government has declined instead of increasing. The local industry, already struggling under a heavy tax burden, has been severely affected by this policy,” the statement read. 

FABAG further explained that high taxation has created significant challenges for manufacturers, making it difficult to compete with imported products.  

The association warned that continued taxation at such levels could lead to idle investments, forced labor retrenchment, and an overall decline in the sector’s growth potential. 

Investors in the fruit juice industry, according to FABAG, are struggling with the effects of wasted investment capacity. The excessive tax burden has also increased production costs, making it challenging to explore export opportunities and sustain local market operations. 

The association strongly believes that reversing the Excise Tax will alleviate pressure on local manufacturers, promote industry growth, and enhance the sector’s contribution to employment and economic development. 

Last year, industrial expert Lawyer Kobbyna Acquah estimated that Ghana’s fruit juice industry has the potential to generate over US$1.5 billion annually while creating over 800,000 sustainable jobs across the value chain. 

Ekumfi Juices, one of Ghana’s leading fruit juice brands, continues to provide income for local farmers and boost exports.  

The Ekumfi factory, the largest fruit processing plant in West Africa, processes up to 10 tonnes of fruit per hour, positioning Ghana as a competitive player in the international market. 

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