Kaapstad: Dr Zunda Chisha of the Kaapstad University of Cape Town has emphasized the critical role of excise taxes as cost-effective interventions in global health policy, particularly in targeting harmful products. During a webinar organized by Vision for Accelerated Sustainable Development (VAST- Ghana), Dr Chisha described excise taxes as pivotal in raising revenue and reducing the consumption of products like tobacco, alcohol, and sugar-sweetened beverages, thereby promoting public health.
According to Ghana News Agency, Dr Chisha's remarks were made during a session titled 'Burdened by Disease, Undermined by Industry: Advancing Health Taxes to Reclaim Africa's Health Priorities.' He differentiated excise taxes from other tax categories, explaining that while direct taxes are levied directly on income or wealth and cannot be shifted, indirect taxes, including excise taxes, are levied on goods or services and can be transferred to consumers. These taxes on harmful products can be specific or ad valorem and are often justified on public health grounds.
Dr Chisha highlighted the importance of excise taxes in generating stable domestic revenue, especially as overseas development assistance declines. He pointed out that these taxes are crucial for addressing health crises such as the rising incidence of non-communicable diseases like cancers, heart disease, and diabetes, which account for over 37% of all deaths in Sub-Saharan Africa. He argued that these taxes primarily benefit poorer populations by reducing the consumption of unhealthy products targeted at vulnerable groups such as the youth and low-income earners.
He further recommended that health taxes should be designed to protect vulnerable groups and should involve uniform specific taxes with regular adjustments for inflation and income growth. Dr Chisha concluded with key lessons, emphasizing that excise taxes are primarily public health tools and secondarily fiscal tools, and that their design should be simple and evidence-based to counter predictable industry pushback.
In a related discussion, Mr Akinbode Oluwafemi from Corporate Accountability and Public Participation Africa (CAPPA) stressed the need for regional cooperation on public health taxes, suggesting the engagement of the African Union. He urged African governments to adopt provisions similar to the Framework Convention on Tobacco Control Article 5.3 in their policies on products with public health implications.
