VAST Ghana wants review of 20% excise tax exemption on local fruit juices

Vision for Accelerated Sustainable Development Ghana (VAST Ghana) has urged the Ministry of Finance to reconsider the 20% excise tax exemption for locally produced fruit juices under the Excise Tax Act, 2026, warning that the measure could undermine efforts to prevent non-communicable diseases (NCDs).

In a statement issued on Monday(October 26), the organisation acknowledged the government’s intention to support local industry and improve the competitiveness of domestically manufactured products but cautioned that the exemption could encourage consumption of beverages high in sugar.

VAST Ghana said fruit juices are not necessarily healthy alternatives to other sugar-sweetened beverages, as some may contain substantial amounts of free sugars that contribute to obesity, type 2 diabetes and other diet-related diseases.

It also questioned how the Ministry of Finance would define fruit juice for the exemption, warning that unclear criteria could create opportunities for tax avoidance and give preferential treatment to locally produced beverages over imported products with similar sugar content.

The organisation called for a sugar-content-based tax system that applies to beverages according to their health risks, regardless of whether they are produced locally or imported.

It also urged the Ministry of Health to raise concerns about the exemption, citing potential implications for the government’s Ghana Medical Trust Fund and Free Primary Health Care Policy.

VAST Ghana further called for clear product classification standards, accurate labelling of sugar content and fruit composition, and regular compliance monitoring to ensure that only products meeting defined criteria qualify for the exemption.

The organisation said the government should review the measure in future tax reforms and work with the Ministry of Health, the Food and Drugs Authority and other stakeholders to ensure that industrial incentives support domestic production without weakening public health protections.

It also urged the authorities to consider the issue in the upcoming national budget statement.