By Albert Allotey
Accra, Aug. 4, GNA – The Vision for Accelerated Sustainable Development (VAST-Ghana) has called on African governments and policymakers across the continent to maintain and increase the current excise tax levels in line with the World Health Organisation (WHO) recommendations.
The VAST-Ghana, a civil society organisation, said in Ghana, said following the passage of the Excise Duty Amendment Act, 2023, it had “seen remarkable progress. A clear indication that health taxes work.”
Mr Labram Musah, the Executive Director of VAST-Ghana made the call during a webinar titled: “Burdened by Disease, Undermined by Industry: Advancing Health Taxes to Reclaim Africa’s Health Priorities.”
He said the Act introduced a comprehensive tax structure, thus 20 per cent excise tax on sugar-sweetened beverages (SSBs), up to 47.5 per cent on alcohol, and a hybrid tax system for tobacco, aligned with ECOWAS and WHO “best buy” interventions.
“The results are clear and compelling – excise revenue from SSBs increased by 80 per cent in just one year, reaching over GHS 1.3 billion in 2023. Tobacco excise revenue doubled within 12 months despite tax waivers on ECOWAS-region imports.
“Health modelling by WHO estimates that these measures could avert over 230,000 deaths and generate billions in additional revenue over time,” Mr Musah stated, adding that, “Modelled health and revenue impact highlights how excise taxes yield dual gains.”
Mr Musah said a WHO report on health taxes modelling projected that a 20 per cent excise price increase on tobacco would reduce consumption by about 26.6 per cent in 2023, generate GHS 131 million extra revenue, and avert more than 34,600 deaths over the working lifespan of contemporaries.
He referenced the report, and said: For alcohol, a similar 20 per cent uplift could raise GHS 2.4 billion and reduce consumption by 7.6 per cent, averting over 44,000 deaths over a century while SSB taxation at that level could reduce consumption by nearly 24 per cent, raise GHS 1.0 billion, and avert 155,000 deaths across a century horizon.”
The Executive Director stated that such projections emphasize how fiscal policies can be leveraged to achieve substantial public health outcomes and assist Africa to achieve the Universal Health Coverage Goal by 2030.
“But this is more than just revenue. This is about health justice. This is about Universal Health Coverage. This is about achieving SDG 3, which calls for good health and well-being for all. This is about reducing inequities, because the poor and the young people benefit most from price-induced behaviours change,” he said.
Mr Musah noted that despite the progress made there were fierce resistance from tobacco, alcohol, and sugary drink industries using the old tactics of fearmongering about job losses, regressivity, illicit trade, and so-called economic impacts.
“Ghana’s experience confirms that the industry’s claims of harm have not materialised, while public health gains and fiscal space for health investment have materialised boldly,” he stated.
He called for earmarking or refencing portions of health tax revenues to support public health initiatives and Ghana’s own Medical Trust Fund, while Indexing health taxes to inflation to maintain their real value.
He urged “African governments should stand firmly against industry interference, in line with WHO Framework Convention on Tobacco Control Article 5.3.”
Mr Musah called for collaboration among civil society, researchers, public health experts, and government actors to push for stronger excise tax regimes across Africa.
“Together, we must unmask the tactics of industry, counter disinformation with evidence, and ensure that our policies reflect the true cost of inaction,” he concluded.
GNA
Edited by Benjamin Mensah