Accra: 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 World Health Organisation (WHO) recommendations. During a recent webinar, VAST-Ghana emphasized the effectiveness of health taxes in promoting public health and generating revenue.
According to Ghana News Agency, VAST-Ghana, a civil society organization, highlighted the progress in Ghana following the passage of the Excise Duty Amendment Act, 2023. This Act introduced a comprehensive tax structure, including a 20 percent excise tax on sugar-sweetened beverages (SSBs), up to 47.5 percent on alcohol, and a hybrid tax system for tobacco. These measures align with ECOWAS and WHO's "best buy" interventions.
The Executive Director of VAST-Ghana, Mr. Labram Musah, noted significant increases in excise revenue, with an 80 percent rise in SSB revenue, reaching over GHS 1.3 billion in 2023. Tobacco excise revenue also doubled within a year, despite tax waivers on ECOWAS-region imports. WHO health modeling estimates these measures could avert over 230,000 deaths and generate significant additional revenue over time.
Mr. Musah referenced a WHO report projecting that a 20 percent excise price increase on tobacco could reduce consumption by about 26.6 percent in 2023, generate GHS 131 million extra revenue, and avert more than 34,600 deaths over the working lifespan of contemporaries. For alcohol, a similar uplift could raise GHS 2.4 billion, reduce consumption by 7.6 percent, and avert over 44,000 deaths over a century. SSB taxation at that level could reduce consumption by nearly 24 percent, raise GHS 1.0 billion, and avert 155,000 deaths across a century horizon.
The Executive Director emphasized the dual gains of excise taxes, highlighting their potential to achieve substantial public health outcomes and assist Africa in achieving the Universal Health Coverage Goal by 2030. He underscored the broader implications for health justice, Universal Health Coverage, and the achievement of SDG 3, which calls for good health and well-being for all.
Despite the progress, Mr. Musah noted resistance from tobacco, alcohol, and sugary drink industries using tactics such as fearmongering about job losses and economic impacts. Ghana's experience, however, shows that industry claims of harm have not materialized, while public health gains and fiscal space for health investment have been realized.
Mr. Musah called for earmarking portions of health tax revenues to support public health initiatives and Ghana's Medical Trust Fund, and for indexing health taxes to inflation to maintain their real value. He urged African governments to resist industry interference, in line with WHO Framework Convention on Tobacco Control Article 5.3, and called for collaboration among civil society, researchers, public health experts, and government actors to strengthen 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," Mr. Musah concluded.
