The Chairman of the Food and Beverages Association of Ghana (FABAG), John Awuni, has called on the government to remove the excise tax on fruit juices.

He explained that the excise tax on sweetened and fruit drinks under the Excise Duty (Amendments) Act 2023 (Act 1093) particularly on locally produced fruit juices and sweetened beverages has had a devastating impact on local manufacturing.

According to Mr. Awuni, this tax has led to layoffs, reduced sales, and other negative consequences for the industry.

He emphasized that sales have dropped by over 50% since the introduction of the excise tax, and government revenue from the sector has also declined.

He argued that removing these taxes would boost local production and ultimately increase the country's tax revenue.

In an interview with GhanaWeb Business, Awuni stated, "The Food and Beverages Association of Ghana (FABAG) would like to appeal to the Minister of Finance and, by extension, the government to remove the excise tax on fruit juices and other nuisance taxes introduced by the NPP government. Eliminating these taxes in the government’s first budget statement is crucial for boosting domestic production and increasing revenue mobilization by the GRA."

He further lamented that the local industry has been crippled by the excise tax, especially as it is already overburdened with numerous other taxes.

FABAG stressed that these excessive taxes are stifling the survival, competitiveness, growth, and sustainability of the domestic fruit juice industry.

Below are taxes paid by manufacturers on raw materials for production:

Import Duty

Import VAT

ECOWAS Levy

Network Charge, Network Charge VAT, Network Charge COVID-19 Health

Ghana Shippers Authority SNF Fee

Import NHIL, Network Charge NHIL

GHS Disinfection Fee

MoTI-IDF Fee

Special Import Levy

Ghana Export-Import Bank (EXIM) Levy

Ghana Education Trust (GET) Fund Import

Network Charge GET Fund Levy

Inspection Fee

African Union Import Levy

COVID-19 Health Recovery Levy

Container Fumigation Fees at the Port

SA/MA

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