Reconsider 20% excise tax removal on locally produced fruit juices – VAST Ghana to Finance Ministry
Vision for Accelerated Sustainable Development, Ghana (VAST Ghana) has urged the Finance Ministry to reconsider removing the 20 per cent excise tax on locally produced fruit juices under the Excise Tax Act 2026.
It cautioned that the exemption could undermine Ghana’s public health objectives and weaken fiscal policy's effectiveness in preventing non-communicable diseases (NCDs).
A statement copied to the Ghana News Agency by Ms Jennifer Maame Ama Owusu, Communications Manager, VAST Ghana, also urged the Ministry of Health to urgently address the 20 per cent excise tax cut.
It noted that the 20 per cent removal could affect the sustainability of the President’s globally acclaimed Ghana Medical Trust Fund, aimed at improving access to treatment and care, and the Free Primary Health Care Policy, which prioritises disease prevention and early intervention.
The statement said the decision warranted careful reconsideration from a public health perspective, stating that, “Supporting local businesses is a legitimate economic objective, but such support should not inadvertently encourage the consumption of products that contribute to excessive sugar intake and increase the risk of diet-related diseases.”
VAST Ghana also expressed concern about the clarity and robustness of the definition of fruit juice that the Ministry of Finance intends to apply in implementing the exemption.
“Ghanaians deserve to know the criteria that will determine which products qualify, particularly given the potential implications for industry profits, public health and domestic revenue mobilisation,” it pointed out.
The statement said fruit juices were not automatically healthy alternatives to other sugar-sweetened beverages (SSBs), stressing that depending on their composition and processing, they may contain substantial amounts of free sugars, including sugars concentrated during production.
It noted that excessive consumption of these beverages could contribute to weight gain, overweight, obesity, type ‘2’ diabetes, and other diet-related NCDs, and that exempting locally produced fruit juices solely on the basis of their origin, without adequately considering their sugar content, risks creating a policy inconsistency in Ghana’s public health tax framework.
The statement said Ghana had demonstrated regional and global leadership in addressing NCDs, and that sustaining it required continued investment in well-designed preventive health policies that deliver substantial health, social, and economic benefits.
“In this regard, any changes to fiscal policies must also safeguard public health, including by ensuring that the overall tax burden on products that contribute to NCDs remains sufficient to discourage harmful consumption,” it stated.
It added that, “Excise taxation is an important public health instrument that can reduce the consumption of harmful products while generating domestic revenue to support national development priorities.
“This approach aligns with the World Health Organization’s ‘3 by 35’ initiative, which calls on countries to increase the real prices of tobacco, alcohol, and sugary drinks through effective tax measures by 2035.”
The statement said Ghana has made incredible progress in addressing the growing burden of NCDs; however, a fiscal policy intended to support domestic production should complement the government’s ongoing efforts, rather than conflict with national efforts to improve nutrition and prevent NCDs.
VAST Ghana therefore urged the Ministry of Finance to adopt a more evidence-based approach that applies excise taxes to beverages based on their free sugar content, regardless of whether they are locally produced or imported.
“Such an approach would align taxation more closely with the health risks associated with excessive sugar consumption, promote a level playing field among manufacturers, and create incentives to produce healthier beverages,” it stated.
It said a carefully designed sugar-content-based tax could also encourage manufacturers to reduce sugar levels in their products while supporting Ghana’s broader public health and revenue mobilisation objectives.
“We, therefore, call on the Ministry of Finance to reconsider the public health implications of the 20 per cent excise tax exemption for locally produced fruit juices in future tax reforms and to work with the Ministry of Health, the Food and Drugs Authority and other relevant stakeholders towards a sugar-content-based approach to taxing beverages.
“Ghana must not allow an industrial incentive to weaken the effectiveness of its public health protections,” VAST Ghana urged.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.