Civil Society Organisations (CSOs) including Revenue Mobilisation Africa (RMA), Vision for Alternative Development (VALD) Ghana, and the CSOs Budget Forum have called for an increase in the 50% ad valorem benchmark and 28 pesewas specific excise tax rates on tobacco, sugar-sweetened beverages (SSBs), and alcohol.
This appeal was made during the National CSOs Dialogue on Enhancing Excise Taxation in Ghana, themed “Enhancing Excise Taxation for Public Health Protection and Revenue Mobilisation.”
Executive Director in charge of Programs for VALD Ghana, Labram Musah emphasized the importance of implementing WHO FCTC best practices for tobacco taxation. He highlighted that WHO recommends total tax levels higher than 75% of the retail price, policies to increase tobacco prices beyond inflation and income growth to reduce affordability, and specific excise taxation with annual adjustments for inflation. Musah noted that such measures would lead to greater public health benefits and a more stable revenue stream, less susceptible to industry price manipulation.
A Freelance Financial Consultant, Richard Amevor revealed that the government spends 97 million cedis on healthcare due to the growing burden of non-communicable diseases linked to tobacco use and other harmful commodities. He stressed the need for Ghana to exceed the 50% excise tax benchmark in line with the ECOWAS directive on tobacco control to generate substantial revenue for healthcare improvements.
On her part, the Women’s Rights and Campaigns Manager at ActionAid Ghana, Eugenia Ishetu Ayagiba stated that progressive taxation is an effective tool for achieving social justice and reducing inequalities. She emphasized that excise taxation should not only raise revenue but also finance social protection and build a healthier, more equitable nation.
Executive Director of Africa Education Watch, Kofi Asare called for broader discussions around SSBs, involving regulatory bodies like the Food and Drugs Authority Ghana, to develop policies that require producers to use standard amounts of sugar to protect public health.
Additionally, the Country Director for SEND GHANA, Harriet Agyemang, echoed the need for increased advocacy on excise taxation to gain government support for higher excise duties and to invest a significant portion of the revenue into preventive and palliative care.
The CSOs therefore urged the government to prioritize the allocation of a significant percentage of tax revenues generated from SSBs, alcohol, and tobacco to support healthcare delivery in the country.
This allocation would be crucial in addressing the broader health implications and associated costs resulting from the consumption of these products, adding that by investing in healthcare infrastructure, prevention programs, and public awareness campaigns, the government can ensure the well-being of Ghanaian citizens.
By Derick Botsyoe || ghananewsonline.com.gh