By Benjamin Nii Nai Anyetei
The Chamber of Agribusiness Ghana (CAG) has called on the government to scrap or significantly review the 20 per cent excise duty imposed on locally processed fruit juices, warning that the tax is undermining Ghana’s agro-processing industry and export competitiveness.
In a statement issued on Monday, December 15, 2025, the Chamber said the excise duty has rendered locally produced fruit juices uncompetitive on both domestic and international markets, discouraging investment in agro-processing and weakening the country’s export potential.
According to CAG, global demand for natural fruit juices is rising steadily, presenting Ghana with an opportunity to expand exports to markets across Africa, Europe, the Middle East and North America. However, it noted that the current tax regime is preventing local producers from capitalising on this growing demand.
The Chamber explained that the excise duty has significantly increased production costs for local manufacturers, forcing some factories to scale down operations, while others have put export plans on hold.
CAG further cautioned that the tax is counterproductive to Ghana’s import substitution agenda, as it encourages the influx of cheaper imported concentrates and finished beverages. This, it said, is contributing to substantial foreign exchange losses.
The Chamber estimates that Ghana loses between 350 million and 450 million dollars annually in foreign exchange through imports that could otherwise be replaced by locally processed fruit products.
Beyond its impact on exports and foreign exchange, CAG stressed that the excise duty poses a serious threat to jobs across the agricultural value chain, including farmers, processors, transporters and distributors. It warned that young people and women, who make up a significant proportion of the workforce in the sector, are likely to be the most affected.
The Chamber cautioned that continued enforcement of the tax could lead to factory closures, reduced demand for locally grown fruits and the collapse of livelihoods in fruit-producing communities.
CAG is therefore urging the government to abolish or substantially review the 20 per cent excise duty and adopt a tax regime that supports value addition, export growth and job creation, in line with Ghana’s industrialisation and economic transformation agenda.
The Chamber said it remains open to engaging the government and relevant stakeholders to develop policies that will unlock the full export and employment potential of Ghana’s agro-processing sector.
