By Albert Allotey
Accra, July 22, GNA – Civil society organisations (CSOs) led by the Vison for Accelerated Sustainable Development, Ghana (VAST-Ghana), have called on the government to maintain the current excise tax rates on unhealthy products, to safeguard public health.
“Any attempt to reduce the excise tax on tobacco, alcohol, and sugar sweetened beverages (SSB) would worsen public health crises and hike healthcare expenditure,” they said.
“For that matter, we are calling on the Ministry of Finance to resist as it prepares to present the Mid-Year Budget Review for 2025 on Thursday July 24, 2025, any tobacco, alcohol, SSBs, and plastic industry pressure to reduce the excise tax rate,” they stated.
They said, “We the civil society organisations, academic institutions, and front-line advocates have strongly endorsed the retention of the current excise tax rates and even call for its increase.”
A statement signed by Mr Labram Musah, the Executive Director of VAST-Ghana and copied to the Ghana News Agency, said any reduction of the excise taxes now would reverse measurable health gains, undermine the fiscal windfall generated between 2023 and 2024.
It argued that this would send wrong signals to both investors and the public about Ghana’s resolve to meet international commitments.
The statement said the multilateral obligations under the WHO Framework Convention on Tobacco Control (FCTC) Article 6 and Article 5.3 demanded resistance to industry interference in policymaking and strong taxation measures to reduce tobacco demand.
It said any attempt in the reduction or downward review of the excise tax would have a huge setback on the government flagship programme, the ‘Ghana Medical Trust Fund,’ to the extent that the number of non-communicable diseases (NCDs) cases would increase significantly.
“This can lead to unsustainability of the Trust Fund as the cost of treatment will override the amount invested under the fund,” it noted.
The statement said since the passage of the Excise Duty Amendment Act’s implementation, Ghana Revenue Authority (GRA) data had shown a dramatic fiscal response.
“Excise revenue from SSBs alone surged from GHS 735 million in 2022 to GHS 1,325.6 million in 2023. Combined revenue across tobacco, alcohol, and SSBs is estimated at over GHS 1.5 billion, exceeding earlier predictions.
“In contrast, before full implementation, tobacco excise grew from GHS 220.8 million in May 2022–April 2023, to GHS 454.5 million in May 2023–April 2024, which was a 106 per cent increase even after granting tax waiver on tobacco products from the ECOWAS region,” it stated.
It explained that the revenue growth illustrates not only the effectiveness of the excise tax system but also its potential to finance public health initiatives that combat the very NCDs being fuelled by these products.
The statement said this modelled health and revenue impact highlighted how excise taxes yield dual gains and that these reinforced the efficacy of fiscal deterrents in reducing unhealthy products intake, especially among lower-income populations who were more responsive to price.
The excise reform aligned with ECOWAS directives and was backed by administrative enhancements, such as robust excise stamps and customs procedures, mitigating illicit financial inflows, it stated.
It stressed that the Public Health Act, 2012 mandated the state to enact measures that promoted healthy nutrition and limit harmful substances and that the excise framework was a cornerstone of that obligation and already delivering measurable returns.
The CSOs upon comprehensive evidence had recommended that the Ministry of Finance should uphold the current excise tax rates on tobacco, alcohol, and SSBs as stipulated in the Excise Duty Amendment Act, 2023.
It should consider upward review of the excise taxes while considering earmarking a portion or percentage of the revenue generated from the excise taxes, specifically for public health initiatives, including disease prevention, health promotion, and healthcare infrastructure.
Others include a consideration to also earmark a portion or percentage of the revenue generated from the excise taxes specifically to support the Ghana Medical Trust Fund, since the Fund was created purposely to finance NCDs.
They urged the government to remain steadfast in prioritising public health over commercial interests, as industry arguments for tax reductions often overlooked broader societal costs and long-term economic benefits.
It said Government should invest in and strengthen enforcement mechanisms to combat illicit trade effectively, ensuring full realisation of public health and revenue objectives without compromising the tax system.
The rest was for the government to establish a robust framework for continuous monitoring and evaluation of the impact of these excise taxes on public health outcomes, consumption patterns, and revenue generation.
The statement urged that Ghana maintained and consider indexing excise to inflation at the current rates, adding, that this would not only ensure fiscal responsibility but also reinforce the country’s commitment to public health in the face of industry pressures.
GNA
Edited by Christabel Addo