Chamber of Agribusiness Warns 20% Juice Tax Threatens Jobs

The Chamber of Agribusiness Ghana (CAG) has cautioned that the 20 percent excise duty imposed on natural fruit juices is endangering up to 127,000 jobs across the agricultural and agro-processing value chains, while undermining Ghana’s prospects of earning up to one billion dollars annually from juice exports.

In a statement, the Chamber said the tax, which was introduced as a public health intervention, is instead crippling the local juice industry.

 According to CAG, processing factories are now operating at only 30 to 45% capacity, far below the optimal range of 70 to 85%, with severe knock-on effects for farmers who depend on these factories as stable buyers of pineapples, oranges, mangoes and other fruits.

Chief Executive Officer of CAG, Anthony Morrison, described the policy as a direct threat to livelihoods, noting that it affects between 50,000 and 120,000 farming households nationwide.

He explained that farmers are experiencing price reductions of 15 to 30%, while as much as 30 to 40% of harvested fruits are left to rot due to reduced demand.

 He added that the collapse of contract farming arrangements has further weakened income security for rural producers.

The Chamber also expressed concern that women farmers, who constitute about 55 to 60% of fruit producers, are bearing the brunt of the policy. In addition, reduced factory activity is limiting employment opportunities for young people and contributing to economic decline in key fruit-growing regions, including the Eastern, Volta and Central regions.

Beyond domestic impacts, CAG warned that the excise duty is eroding Ghana’s international competitiveness in the fast-growing market for natural and functional beverages.

Mr. Morrison noted that global demand in the sector is expanding at an annual rate of six to eight percent, presenting Ghana with an opportunity to secure between 700 million and one billion dollars in export earnings.

The Chamber is therefore calling on government to immediately exempt 100% natural fruit juices from the excise duty, cautioning that failure to reverse the policy could lead to further job losses, declining farmer incomes and a weakened position for Ghana in the global juice market.