The Vision for Accelerated Sustainable Development Ghana (VAST Ghana) has urged the Ministry of Finance to introduce comprehensive excise tax reforms in the 2027-2030 Budget Statement. This move aims to alleviate the growing burden of non-communicable diseases (NCDs) and mobilize sustainable domestic resources for healthcare financing. According to VAST Ghana, a comprehensive health tax reform is a strategic fiscal and public health priority.
VAST Ghana recommends extending the hybrid excise tax structure to all alcoholic beverages, including beer, wine, cider, and ready-to-drink products. The organization also suggests incorporating alcohol-by-volume (ABV) principles, so products are taxed according to their alcohol content. Furthermore, VAST Ghana proposes adopting a minimum pricing policy to complement excise taxation, ensuring that products are taxed fairly.
The organization also advocates for an increase in the specific tobacco excise tax from GHc 0.28 to GHc 1.00 per cigarette stick. This increase would ensure that total taxes reach 75% of the retail price, reducing affordability and strengthening the health impact of tobacco taxation. Additionally, VAST Ghana recommends upwardly reviewing the ad valorem tax from 50% to 100%, which would substantially increase the price of cigarettes.
VAST Ghana also calls for the abolition of excise taxation on e-cigarettes and e-liquids. According to the organization, Ghana's public health and fiscal frameworks should not create a situation where prohibited products under the Public Health Act 2012 (Act 851) are simultaneously presented as taxable commodities within the excise tax system.
The organization recommends reintroducing a 20% tax on fruit juices in the interest of public health. VAST Ghana also suggests introducing a hybrid excise tax for all Sugar-Sweetened Beverages (SSB) products. This move would help reduce the consumption of unhealthy products and generate revenue for healthcare financing.
VAST Ghana proposes earmarking a defined proportion of revenue generated from tobacco, alcohol, SSB, and other health taxes to support NCD prevention, health promotion, tobacco and alcohol control programs, and other priority health interventions. The organization believes that the 2027-2030 Budget framework provides an opportunity to institutionalize health taxation as a core component of fiscal policy and sustainable health financing.
According to VAST Ghana, well-designed health taxes can reduce consumption of harmful products while generating public revenue. The organization cites the World Health Organization's (WHO) '3 by 35' Initiative, which places taxation at the center of global efforts to reduce NCDs and strengthen domestic financing. VAST Ghana urges the Ministry of Finance to make these reforms a central component of Ghana's domestic resource mobilization and public health strategy.
Key points
- VAST Ghana calls for comprehensive excise tax reforms to reduce NCDs and mobilize healthcare financing.
- The organization recommends extending the hybrid excise tax structure to all alcoholic beverages and incorporating ABV principles.
- VAST Ghana proposes earmarking revenue generated from health taxes to support NCD prevention and health promotion programs.
