Ministry asked to remove 20% excise tax on locally produced fruit juices

The Vision for Accelerated Sustainable Development, Ghana (VAST Ghana) has urged the Ministry of Finance to reconsider the implementation of the 20% excise tax exemption on fruit juices produced locally within Ghana. According to the organization, this exemption could hinder Ghana's public health goals and the effectiveness of fiscal policy in preventing non-communicable diseases (NCDs).

VAST Ghana highlighted concerns over the clarity of the definition of fruit juice that the Ministry of Finance intends to apply, cautioning that a lack of precision could lead to inconsistencies in the country's public health tax framework. The organization emphasized that while supporting local businesses is a legitimate economic objective, it should not encourage excessive sugar intake that could lead to diet-related diseases.

VAST Ghana also stressed that not all fruit juices are healthy alternatives to sugar-sweetened beverages, as their sugar content can vary significantly based on composition and production methods. The group pointed out that Ghana has been a regional and global leader in addressing NCDs, and that maintaining this leadership requires sustained investment in preventive health policies that promote public health, social, and economic benefits.

They urged the Ministry of Finance to consider a more evidence-based approach to excise taxation, applying taxes to beverages based on their sugar content, rather than solely on their origin. Such an approach would promote healthier choices, encourage manufacturers to produce lower-sugar products, and align taxation more closely with health risks.