Commissioner General of the Gambia Revenue Authority, Yankuba Darboe, has stated that tobacco taxation should be evaluated based on its impact on public health, not just revenue generation. Speaking at the Association of Public and Environmental Health Officers – The Gambia (APEHOG) event, Darboe highlighted that a good tax system influences behavior, protects public health, and supports national development. He emphasized that tobacco presents a unique situation where revenue generation and public health objectives must be balanced.
Darboe explained that The Gambia's journey in tobacco taxation began in 2013 when the government shifted from a weight-based tax to a specific excise of D5 per pack of 20 cigarettes. This move aimed to make cigarettes less affordable, and the tax has since risen to D45 per pack. Additionally, an environmental tax was introduced, and a Tobacco Control Levy was implemented. These reforms were a result of collaboration between the Ministry of Finance, Ministry of Health, GRA, and the World Health Organization (WHO).
The reforms have produced significant results, according to Darboe. WHO reported that tobacco import volumes decreased from 1.12 million kilograms in 2012 to 0.44 million kilograms in 2016, representing a 60% reduction. Meanwhile, government revenue increased from D155.32 million to D420.06 million. Darboe stressed that collecting revenue is only part of the equation, as tax revenue is used to build hospitals, buy medicines, and finance schools and roads.
Darboe acknowledged that health sector colleagues have faced difficulties accessing funds from the Tobacco Control Levy, which is meant to support tobacco-control interventions. He called for dialogue between the Ministry of Health, Ministry of Finance and Economic Affairs, GRA, and WHO to ensure that resources serve their intended purpose. He also warned that taxation without enforcement will fail, citing the risk of illicit products entering the country and undermining public health objectives.
To address these challenges, Darboe highlighted GRA's efforts to strengthen border management, intelligence, and the introduction of the Digital Excise Stamp for cigarettes. This move serves as both a revenue and public health tool. He emphasized that the principle of balancing revenue generation and public health objectives must extend beyond tobacco to alcohol and other products driving non-communicable diseases.
Darboe, who received the 2024 WHO World No Tobacco Day Award for Africa, emphasized that revenue administrations are not merely collection agencies but development institutions. He called for periodic review of tobacco taxes to prevent affordability, regulation of emerging nicotine products, a stronger fight against illicit trade, data-driven decisions, and public education, especially among youth.
Ultimately, Darboe emphasized that fiscal policy has served public health when a tax on cigarettes makes a young Gambian think twice before starting to smoke. He urged institutions to stop working in silos and collaborate to achieve both public health and revenue generation objectives.
Key points
- The Gambia's tobacco tax reforms have led to a 60% reduction in tobacco import volumes and increased government revenue.
- Commissioner General Yankuba Darboe emphasizes that tobacco taxation aims to improve public health, not just generate revenue.
- The Gambia Revenue Authority has introduced measures to strengthen border management and combat illicit trade.
