Accra:The Vision for Accelerated Sustainable Development Ghana (VAST Ghana) has urged the Ministry of Finance to implement comprehensive excise tax reforms in the 2027-2030 Budget. This initiative aims to mitigate the increasing burden of non-communicable diseases (NCDs) in the country.
According to Ghana News Agency, VAST Ghana's Communications Manager, Ms. Jennifer Maame Ama Owusu, stated that the proposed excise tax reforms would safeguard vulnerable populations and generate sustainable domestic resources for healthcare financing. The organization recommends that the Ministry of Finance prioritize a comprehensive health tax reform as a key fiscal and public health strategy.
VAST Ghana suggests extending the hybrid excise tax structure to cover all alcoholic beverages, not just spirits. This includes beer, wine, cider, and ready-to-drink alcoholic products. Additionally, the organization recommends incorporating alcohol-by-volume (ABV) principles to tax products based on their alcohol content and implementing a minimum pricing policy to complement excise taxation.
The statement also proposes increasing the specific tobacco excise tax from GHc 0.28 to GHc 1.00 per cigarette stick to ensure total taxes account for 75% of the retail price. It further recommends an upward revision of the ad valorem tax from 50% to 100%, which would significantly raise cigarette prices and reduce their affordability, thereby enhancing the health impact of tobacco taxation.
Moreover, VAST Ghana calls for the removal of excise taxation on e-cigarettes and e-liquids, emphasizing that Ghana's public health laws should not simultaneously classify these prohibited products as taxable commodities. Eliminating these products from the excise tax schedule would improve policy coherence and strengthen enforcement.
The organization also advocates for reintroducing a 20% tax on fruit juices for public health reasons and implementing a hybrid excise tax for all Sugar-Sweetened Beverages (SSB) products. VAST Ghana recommends allocating a specific portion of revenue from tobacco, alcohol, SSB, and other health taxes to support NCD prevention, health promotion, tobacco and alcohol control programs, and other health initiatives such as the Ghana Medical Trust Fund and Free Primary Healthcare policy.
The 2027-2030 Budget framework presents an opportunity for Ghana to institutionalize health taxation as a core component of fiscal policy, NCD prevention, and sustainable health financing. VAST Ghana emphasizes that well-designed health taxes can reduce the consumption of harmful products while generating public revenue. The World Health Organization's '3 by 35' Initiative highlights the importance of taxation in global efforts to reduce NCDs and strengthen domestic financing.
VAST Ghana urges the Ministry of Finance to prioritize these reforms as a central element of Ghana's domestic resource mobilization and public health strategy.