The Chairman of the Food and Beverages Association of Ghana (FABAG), John Awuni, has welcomed the government’s decision to abolish the 20% excise duty on locally manufactured fruit juices, describing it as a major boost for local production, investment and job creation.

His remarks follow Finance Minister Dr Cassiel Ato Forson’s announcement during the presentation of the 2026 Mid-Year Budget Review, where he unveiled the tax relief as part of measures to support local manufacturers and strengthen Ghana’s agro-processing industry.

According to the Finance Minister, the removal of the tax is intended to improve efficiency, close tax loopholes and create a more favourable environment for local businesses.

Speaking on Adom FM’s Dwaso Nsem, Mr Awuni said the decision was long overdue, revealing that FABAG had consistently opposed the levy since it was introduced.

“First of all, I want to strongly commend the Finance Minister and, for that matter, the NDC government for abolishing the 20% excise tax on fruit juices,” he said.

Mr Awuni explained that the association repeatedly petitioned successive governments because the tax discouraged local production, affected employment and failed to generate the expected revenue.

“I’m one particular person who stood against the introduction and implementation of that policy for years, from the MPP government to the current NDC administration. We submitted several petitions because it affected local production, affected job creation and was not yielding the desired revenue for the state,” he said.

Describing the decision as “very laudable,” Mr Awuni urged local fruit juice manufacturers to take full advantage of the tax relief by expanding production and creating more employment opportunities.

“The decision to scrap it is a very laudable one and highly commendable. Local juice manufacturers must seize this opportunity and ensure the government achieves the objectives behind abolishing the tax,” he stated.

He noted that although government may lose revenue from the excise duty in the short term, increased production and sales would generate more income through Value Added Tax (VAT), corporate taxes and other business-related taxes.

“The Finance Minister said the purpose of abolishing the tax is to enhance local production and create jobs. Our members must justify that decision by increasing production. As sales grow, government will still earn revenue through VAT, corporate taxes and profits, while more jobs will be created,” he added.

Mr Awuni expressed confidence that the removal of the excise duty would improve the competitiveness of locally manufactured fruit juices and attract more investment into the sector.