Ghana's new Excise Bill: Full list of products affected, taxes removed and what could become cheaper

• Parliament has passed the Excise Bill, 2026, removing excise tax on locally produced fruit juices in a move aimed at lowering production costs, supporting local processors and promoting healthier consumption.

• The new law also introduces a sliding-scale excise duty for beer and other beverages, rewarding manufacturers that source more raw materials from Ghanaian farmers with lower tax rates.

• While the tax changes could make some locally made products cheaper, lower retail prices are not guaranteed, as manufacturers and retailers will still determine final selling prices based on production and market costs.

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Buying a bottle of locally made fruit juice in Ghana could become cheaper in the coming months after Parliament passed the Excise Bill, 2026, removing excise duty on locally manufactured fruit juices as part of a broader tax reform aimed at supporting local industries and encouraging healthier lifestyles. But while the tax cut is expected to reduce production costs for manufacturers, consumers should not expect supermarket prices to fall automatically.

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The Excise Bill is a law that tells the government which specific goods should be taxed, how much tax should be charged, and how that tax should be collected. Think of it as a special tax law for certain products, rather than a tax on your income or salary. For example: When you buy a bottle of beer, or a soft drink, part of the price often includes a special government tax. That special tax is called excise duty.

So imagine a company that produces fruit juice in Ghana. Before the new Excise Bill, the company had to pay excise tax on the juice and that tax became part of its production cost. So some of that cost could be passed on to consumers through higher prices. But under the new Excise Bill, Parliament has removed the excise tax on locally produced fruit juice and the company no longer pays that particular tax which reduces its production costs. The company may choose to lower prices, although it is not required to do so.

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The newly passed legislation also introduces a new excise duty framework for selected imported and locally manufactured products, expands the use of excise tax stamps and creates tax incentives for beverage manufacturers that source more raw materials from Ghanaian farmers. This was noted in the Mid-year budget. The Bill still requires presidential assent before it becomes law and its commencement date will be governed by the final enacted legislation.

The most immediate change in the Excise Bill is the removal of excise duty on fruit juices produced in Ghana. Presenting the Bill in Parliament, Deputy Finance Minister Thomas Nyarko Ampem said the measure is intended to make locally produced juices more affordable while encouraging healthier consumption.

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The government also expects the measure to increase demand for fruits grown in Ghana, benefiting farmers, fruit processors and agro-processing companies. The proposal forms part of the broader tax reforms announced in the 2026 Mid-Year Budget Review.

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Removing an excise tax reduces manufacturers' tax burden, but retail prices depend on several other factors, including production costs, transport and fuel costs, exchange-rate movements, distributor and retailer margins and market competition. This means companies may choose to pass all, some or none of the tax savings on to consumers. If competition among juice manufacturers increases, consumers are more likely to benefit through lower prices.

Another major feature of the Bill is the introduction of a sliding-scale excise duty for beer and certain other beverages. Instead of every manufacturer paying the same rate, companies that use more locally sourced raw materials will qualify for lower excise duties.

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According to the Deputy Finance Minister:

The policy will encourage breweries and beverage producers to purchase more maize, sorghum, cassava and other locally grown agricultural products, strengthening links between Ghana's farming and manufacturing sectors.

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Based on the Bill presented to Parliament, the key products and sectors affected include:

• Locally manufactured fruit juices where the excise duty is removed and to help lower production costs, improved competitiveness and healthier consumer choices. 

• The other product to benefit is beer with the introduction of the new sliding-scale for use of raw materials. This is a tax policy where excise duty rates decrease as breweries use a higher percentage of locally sourced agricultural inputs (such as maize grits, sorghum, or cassava) instead of imported malt. 

• Other beverages are expected to benefit from this initiative as well.

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For manufacturers, especially those processing agricultural products, the reforms could lower production costs and improve competitiveness. Companies using locally produced inputs may also benefit from lower tax liabilities, creating an incentive to source more raw materials from Ghanaian farmers instead of importing them. Government hopes this will stimulate investment in agro-processing while creating jobs across agriculture and manufacturing.

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For ordinary Ghanaians, the new law could make some locally produced fruit juices cheaper if manufacturers pass on the tax savings and encourage factories to buy more fruits and raw materials from Ghanaian farmers. However, it does not guarantee lower prices, because manufacturers and retailers still decide how much they charge customers.