By Albert Allotey, GNA
Accra, May 01, GNA – An evidence-based research report, “Advancing Tobacco Taxation for Improved Public Health in Ghana)”, has recommended to the Ministry of Finance to increase tobacco excise tax to represent at least 70 per cent of retail price of cigarette, and 75 per cent total taxes.
The report stated, “The current post-2023 levels (approximately 47 per cent excise and 65 per cent total taxes) remain below these thresholds, limiting tobacco reductions in affordability and consumption.
“To reach recommended levels, the specific excise tax should rise from the current GHS 0.28 per cigarette to GHS1.00 per cigarette (i.e., GHS20 per pack of 20 cigarette) by December 2026, with subsequent annual increases equal to the greater of 10 per cent or the inflation and exchange rate each year.”
It said this move would help Ghana to align with the WHO recommendations and best practices in low- and middle-come countries.
The report was initiated by the Vision for Accelerated Sustainable Development (VAST-Ghana), a public health advocacy organisation, and launched at a strategic stakeholders meeting held on Wednesday in Accra.
The meeting was attended by representatives from the Ministry of Health, Ministry of Finance, Food and Drugs Authority, Ghana Revenue Authority (GRA), civil society organisations and academia.
It was supported by the Global Health Advocacy Incubator (GHAI).
The report also called on the Ministry of Finance to introduce automatic, periodic adjustment (preferably annual) to the specific excise component (and, where applicable, the ad-valorem rate) to outpace inflation and per capita income growth.
“Without such indexing, the real value of the tax erodes over time due to currency depreciation, rising incomes, and general price increases, making tobacco products more affordable and undermining health and revenue gains,” it stated.
Other recommendations in the report were the strengthening of the hybrid tax structure, complementing taxation with comprehensive tobacco control measures and addressing illicit trade proactively.
The rest were that government should monitor, evaluate, and build evidence while earmarking tobacco excise revenue for public health.
Dr Alex Moyem Kombat, the Assistant Commissioner of Research and Policy at the GRA, who launched the report, said calling for the earmarking of revenue accrued from the tobacco excise tax to support health-related purposes would be a venture in futility.
Rather civil society organisations and health agencies should come together to initiate a legislation in Parliament to enable some fund to be created to support tobacco-related diseases,” he clarified.
“All monies collected through taxes are put into the Consolidated Fund and until a legislation is passed by Parliament to enable some funds to be withdrawn from it, no money is taken from it for any purposes,” Dr Kombat stated.
Dr Michael Boachie, the Lead Consultant of the research report, in a presentation said there was the need for multisectoral alignment in the implementation of the policy recommendations.
He said the Ministry of Finance should draft legislation for the GHS1.00 retail price per cigarette and US$2 minimum, Parliament to enact indexing mandate, the Ghana Revenue Authority and the Police Service should enforce track-and-trace and eliminate exemptions.
He urged the Ministry of Health and the Food and Drugs Authority to deploy MPOWER strategies and ring-fenced NCD funds.
He stated: “A sustained political commitment and resistance to tobacco industry vested interests will secure these dual health and economic gains for current and future generations.”
Mr Labram Musah, the Executive Director of VAST-Ghana in a welcoming remark, said tobacco use remained a major driver of cardiovascular diseases, cancers, chronic respiratory conditions, and thousands of preventable deaths each year, claiming 6,700 lives annually in Ghana.
“The growing use of emerging tobacco products such as vapes, electronic cigarettes, shisha, especially among our children and young people, further heightens the urgency for decisive action,” he stated.
Mr Musah said government had shown credible leadership in tobacco control measures, yet the products were still too affordable, as Ghana’s excise tax regime had not kept pace with inflation and income growth.
“The upcoming review of the Excise Tax Amendment Act therefore presents a strategic window for us to strengthen this vital public health and fiscal tool,” he pointed out.
He expressed VAST-Ghana’s happiness to associate itself with the government flagship programmes – the Ghana Medical Trust Fund (GMTF) and the Free Primary Healthcare.
“We want to use this medium to urge the Ministry of Health to ensure that the NCDs risk factors such as tobacco and alcohol are mainstream as key component of the GMTF,” Mr Musah said.
The Executive Director expressed gratitude to Dr Michael Boachie, the lead consultant of the research report, and the GHAI and its representatives for their support.
GNA
Edited by Benjamin Mensah