The Chamber of Agribusiness Ghana (CAG) has warned that the 20% excise duty on natural fruit juices poses a serious threat to Ghana’s agro-industrialisation agenda and could undermine the government’s flagship 24-Hour Economy policy.
In a statement released 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, contrary to national efforts to boost industrial output, job creation, and export competitiveness.
According to CAG, the excise duty, which applies to locally processed natural fruit juices, has increased production costs for manufacturers and reduced their ability to compete with imported beverage concentrates and finished products.
The Chamber argued that instead of incentivising domestic agro-processing, the policy is penalising local value addition and sending the wrong signals to investors in the agricultural value chain.
“This tax contradicts Ghana’s agro-industrialisation goals and directly undermines the 24-Hour Economy by making continuous production unviable for local processors,” the statement said.
CAG noted that agro-processing is one of the most labour-intensive sectors of the economy and a critical driver of rural employment, especially for youth and women. The Chamber warned that sustained pressure on juice manufacturers could lead to factory closures, reduced demand for raw agricultural produce, and job losses across the value chain.
The Chamber further cautioned that the excise duty weakens Ghana’s import-substitution efforts by making locally produced juices more expensive than imported alternatives, thereby increasing foreign exchange pressure and exposing the Cedi to further depreciation.
CAG said Ghana has significant potential to become a regional hub for fruit processing, given its strong production of pineapple, mango, citrus, and other tropical fruits. However, that potential, it stressed, cannot be realised under a tax regime that discourages investment in local processing.
The Chamber is therefore calling on the government to review and repeal the 20% excise duty, urging policymakers to align tax measures with national development priorities, including industrial growth, job creation, and economic resilience.
