The Association of Ghana Industries (AGI) has called on the government to eliminate 20% excise tax on locally made sweetened drinks and fruit juices.

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According to the AGI, getting rid of this tax will help support the government’s 24-hour economy program by allowing local producers to grow their businesses and create more jobs.

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They believe that removing the tax will help juice makers return to full production capacity and even produce more than before.

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The AGI also argued that cutting the tax will provide more job opportunities in local factories.

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Excise tax was introduced in 2023 under the Amendment Act 2023 (Act 1093) and has made things harder for local juice makers.

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Since the tax started, sales for some companies have dropped by over 50%, and their production capacity has fallen from about 85% to just 38%.

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In a letter to the new Minister of Finance, Dr. Cassiel Ato Forson, the AGI said the tax has led to many job losses and allowed imported products to take over the local market.

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Local producers like Ekumfi Fruits and Juices Limited, Healthlife Beverages Limited, Kasapreko Limited, and Aquafresh Limited are also struggling to compete with imported goods, rising production costs, and multiple taxes.

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The AGI has therefore, warned that if the government doesn’t address these problems, the entire sector could collapse, placing the 24-hour economy goals in jeopardy.

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While the Minister of Finance, Dr. Cassiel Ato Forson gears up to present 2025 Budget to Parliament on March 10, the Ghana National Chamber of Commerce and Industry (GNCCI) has called for the inclusivity of pro-business reforms and policies.

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According to the institution, the private sector has experienced significant economic difficulties over the past decade due to lack of fiscal discipline, high fiscal liabilities from the financial and energy sectors, and expensive fiscal response to global shocks. 

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In view of this the GNCCI calls on government to use the 2025 National Budget to initiate policies and incentives that simulate private sector growth as a launch platform to resetting the economy.

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The Ghana Federation of Labour also sent a letter to the government, asking them to reconsider the excise tax, as it is seriously damaging the local beverage production industry.

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