By Albert Allotey
Accra, Aug. 7, GNA – Dr Zunda Chisha at the Kaapstad University of Cape Town says excise taxes are among the most cost-effective interventions in global health policy that specifically targets harmful products.
He said: “Products such as tobacco, alcohol, and sugar-sweetened beverages (SSBs) are targeted to help raise revenue and to reduce the consumption of harmful products while promoting health.”
Dr Chisha made the remark during a webinar organised by the Vision for Accelerated Sustainable Development (VAST- Ghana} titled, “Burdened by Disease, Undermined by Industry: Advancing Health Taxes to Reclaim Africa’s Health Priorities.”
Dr Chisha, who spoke on the topic, “The Distinction between excise taxes and other taxes,” mentioned general categories of taxes as direct taxes and indirect taxes.
He explained that the direct taxes are levied on income or wealth, paid directly by taxpayer, and cannot be shifted while the indirect taxes are levied on goods or services, collected by an intermediary, and can be shifted.
He said taxes on harmful products could be specific (per unit) or ad valorem (% of value) and often justified on public health ground, which are typically passed on to consumers.
Dr Chisha said excise taxes offered stable domestic revenue and were crucial as the overseas development assistance (ODA) declined.
He stated that it also helps in confronting health crisis such as non-communicable diseases (NCDs), for example cancers, heart disease, and diabetes, which he noted are rising rapidly and causing over 37 per cent of all deaths in Sub-Sahara Africa.
He said the taxes mostly benefitted the poor by reducing consumption of unhealthy products, which were aggressively targeted at the youth and low-income group, adding that, “the taxes shifts jobs to healthier sectors and increase predictable revenue.”
Dr Chisha said best practices in health practices should be as simple as possible, protect vulnerable groups from initiation and/or excessive use.
He stated that uniform specific taxes are generally better than ad valorem, and that taxes should have regular increases accounting for inflation and income growth.
He provided takeaway lessons as, “Excise taxes are public health tools first, and fiscal tools second. Design matters – simple, inflation-adjusted, and broad-based. Industry pushback is predictable – and manageable with evidence. Framing is crucial: Link to youth protection, NCDs, and sustainable financing.”
Mr Akinbode Oluwafemi of Corporate Accountability and Public Participation Africa (CAPPA) who spoke on “Industry Tactics in Undermining Excise / Health Taxes in Africa,” said: “There is the need for regional cooperation on public health taxes through the engagement of the African Union (AU).”
He called on African governments to incorporate provisions like the Framework Convention on Tobacco Control (FCTC) Article 5.3 across policies on products with public health harms.
GNA
Edited by Benjamin Mensah