The Vision for Alternative Development (VALD-Ghana) has made a strong appeal for regular adjustments to the excise tax on tobacco in Ghana, emphasizing the need to sustain its impact in the face of inflation.
Highlighting the urgency for periodic reviews, VALD-Ghana explained that consistent increases in the excise tax would help keep tobacco products unaffordable, which is vital to curb consumption and protect public health.
This call was made by the Executive Director of Programmes for VALD-Ghana, Labram Musah, during a stakeholders’ meeting focused on Ghana’s excise tax strategy.
At the event, Mr. Musah delivered a presentation titled, “Enhancing Public Health and Revenue Generation: The Urgent Need for Ghana to Revise Its Tobacco Excise Tax Structure.” Citing a recent post-assessment of the tax’s effectiveness, he explained that inflation and currency depreciation have significantly eroded the real value of the specific excise tax on tobacco products. Originally pegged at $0.02 (equivalent to 0.28 pesewas), the tax now fails to keep tobacco prices prohibitively high, a critical factor in deterring use and fostering a healthier society.
Addressing the broader issue of public health taxes, Musah underscored the role these levies play in addressing “market failures for negative externalities and internalities” associated with harmful products like carbonated drinks, sugar-sweetened beverages, and plastics.
A representative of the Ghana Revenue Authority (GRA) added that despite measures to mitigate tax evasion, illegal tobacco products remain prevalent in Ghana’s markets.
He urged researchers to study the impact of the recent tax amendments, providing crucial data to guide the GRA and Ministry of Finance on any potential future changes.
The head of the Tobacco and Substances of Abuse Department at the Food and Drugs Authority (FDA), Dr. Olivia Agyekumwaa Boateng, praised the passage of the Excise Duty Amendment Act, describing it as a key achievement in Ghana’s tobacco control efforts.
She reaffirmed the FDA’s commitment to enforcing the law, aiming to protect both individual and public health through sustained regulatory efforts.
The FDA is also intensifying its smoke-free policy enforcement as part of the broader Public Health Act, with support from the Tobacco Policy Action Fund for Africa (TOPAFA) project.
Dr. Boateng emphasized that TOPAFA, awarded by the Management Sciences for Health, will play a crucial role in helping African nations, including Ghana, advance tobacco control initiatives and address funding challenges for WHO Framework Convention on Tobacco Control (FCTC) commitments.
The stakeholders’ meeting accentuates the urgent need for a comprehensive, cross-sectoral approach to tackling tobacco-related health issues in Ghana.
