FABAG calls for removal of ‘excise tax’ on fruit juices

The Food and Beverages Association of Ghana (FABAG) has made a strong appeal to the government to remove the ‘excise tax on fruit juices, arguing that its imposition has severely affected the local industry and hindered economic growth.

In a press release dated February 16, 2025, Rev. John Awuni, the Executive Chairman of FABAG, called on the Minister of Finance and the government to address the issue in the upcoming budget.

The association believes that removing this tax, along with other “nuisance taxes,” would help stimulate domestic production and significantly increase revenue mobilization by the Ghana Revenue Authority (GRA).

“The introduction and imposition of the obnoxious EXCISE tax on sweetened and fruit drinks under Excise Duty (Amendments) Act 2023 (Act 1093) especially on locally produced fruit juices and sweetened beverages has had a devastating negative effect on local manufacturing with a multiplier effect on employment levels, sales turnover, working capital and international market competitiveness of Ghanaian fruit juices and sweetened beverage”, the statement said

According to FABAG, the local industry already faces a heavy tax burden, including Import Duty, VAT, Ecowas Levy, and multiple other taxes, making it difficult for manufacturers to survive.

This overwhelming tax load has led to retrenchment of workers, higher production costs, and an inability to compete with imported products.

The association stressed that reversing the Excise Tax would not only relieve the struggling sector but also promote growth and sustainability.

He argued that removing the tax could lead to increased sales, more jobs, and higher tax contributions, including PAYE, corporate taxes, and VAT.

FABAG alluded remained committed to supporting the government’s goals and hopes for a favorable decision in the first budget statement.

In conclusion, FABAG called on the government to show understanding of the current challenges facing the fruit juice manufacturing industry and act swiftly to reverse the excise tax for the sake of economic recovery and job creation.

“This urgent request from FABAG underscores the association’s dedication to ensuring that the domestic food and beverage industry thrives in the face of mounting challenges”.

The Excise Tax, introduced under the Excise Duty (Amendments) Act 2023 (Act 1093), it concluded has negatively impacted the production of locally made fruit juices and sweetened beverages, resulting in a drop in sales by more than 50%.

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