FABAG Applauds President Mahama for Abolishing Fruit Juice Excise Tax as GIPS Urges Strategic Procurement Reforms

The Food and Beverages Association of Ghana (FABAG) has expressed strong support for the government’s decision to eliminate the 20% excise duty on locally manufactured fruit juices, a move seen as a critical lifeline for the industry. Effective from October 1, 2026, this reform is part of the new Excise Duty Act and aims to reverse the financial strain placed on manufacturers since the tax's introduction in 2023. FABAG specifically commended President John Mahama, the Finance Minister, and Parliament for this legislative change, highlighting its potential to stimulate local production, secure employment, and drive broader economic growth. The association noted that the previous tax regime had significantly hampered the competitiveness of local brands against imported alternatives.

Beyond the immediate relief for the beverage sector, the association emphasized its readiness to partner with the government to ensure the smooth implementation of the new policy. FABAG stressed that the removal of the 20% levy is a necessary step toward enhancing the overall competitiveness of Ghana's food and beverages sector. They believe that this fiscal adjustment will allow companies to reinvest in their operations, potentially leading to lower prices for consumers and increased demand for locally sourced raw materials. This development is viewed as a major victory for industrial advocacy and a sign of the government's commitment to supporting indigenous businesses.

In a related push for economic efficiency, Dr. Simon Annan, President of the Ghana Institute of Procurement and Supply (GIPS), has called for a transformative approach to procurement and supply chain management. Speaking at the second edition of the National Procurement and Supply Chain Conference (NPSC 2026) in Accra, Dr. Annan argued that procurement must evolve from a traditional transactional role into a strategic driver of national development. He asserted that for Ghana to achieve inclusive and measurable industrial growth, the procurement sector must lead the way in fostering innovation and inclusion. Dr. Annan highlighted that strategic supply chain management is essential for optimizing national resources and ensuring that development projects deliver maximum value.

The calls from GIPS align with the broader industrial goals supported by the recent tax reforms for beverage manufacturers. By focusing on innovation and strategic oversight, Dr. Annan believes the procurement sector can significantly improve economic outcomes across various industries. He urged the government and private sector players to recognize procurement and supply chain management as vital components of the national development agenda. This dual focus on fiscal relief for manufacturers and the professionalization of supply chains suggests a comprehensive strategy aimed at bolstering Ghana's industrial landscape. As the country moves toward the implementation of the new tax regime in late 2026, stakeholders remain optimistic about the prospects for sustainable economic expansion.