Accra: An evidence-based research report titled 'Advancing Tobacco Taxation for Improved Public Health in Ghana' has recommended a significant increase in the tobacco excise tax by the Ministry of Finance. The report suggests that the tax should represent at least 70% of the retail price of a cigarette and 75% of total taxes to effectively reduce tobacco affordability and consumption.
According to Ghana News Agency, the current tax levels, post-2023, are approximately 47% excise and 65% total taxes, which fall short of these recommended thresholds. The report advocates for raising the specific excise tax from GHS 0.28 per cigarette to GHS 1.00 per cigarette, equivalent to GHS 20 per pack of 20 cigarettes, by December 2026. It also suggests subsequent annual increases should match the greater of 10% or the inflation and exchange rate each year.
The initiative was spearheaded by the Vision for Accelerated Sustainable Development (VAST-Ghana), a public health advocacy organization, and was launched during a strategic stakeholders meeting in Accra. The event saw participation from representatives of the Ministry of Health, Ministry of Finance, Food and Drugs Authority, Ghana Revenue Authority (GRA), civil society organizations, and academia, supported by the Global Health Advocacy Incubator (GHAI).
Further recommendations from the report include the introduction of automatic, periodic adjustments to the specific excise component and, where applicable, the ad-valorem rate to stay ahead of inflation and income growth. Without such indexing, the report warns that the real value of the tax could erode over time, leading to increased affordability of tobacco products and undermining health and revenue gains.
Dr. Alex Moyem Kombat, Assistant Commissioner of Research and Policy at the GRA, emphasized that earmarking revenue from tobacco excise tax for health-related purposes requires legislative action. He clarified that without parliamentary legislation, funds collected through taxes are placed in the Consolidated Fund, and no specific allocations can be made.
Dr. Michael Boachie, the lead consultant of the research report, highlighted the need for multisectoral alignment in implementing policy recommendations. He urged the Ministry of Finance to draft legislation for the GHS 1.00 retail price per cigarette and for Parliament to mandate indexing. He also called on the Ghana Revenue Authority and the Police Service to enforce track-and-trace and eliminate exemptions.
Mr. Labram Musah, Executive Director of VAST-Ghana, expressed concern over the rising use of emerging tobacco products, especially among youth, and called for decisive action. He acknowledged the government's leadership in tobacco control measures but noted that products remain too affordable due to the excise tax regime not keeping pace with inflation and income growth.
The report's recommendations aim to align Ghana with WHO recommendations and best practices in low- and middle-income countries, focusing on strengthening public health and fiscal tools to combat tobacco use.