Author: Abigail Ampofo

Participants at a day’s National CSOs Dialogue on Enhancing Excise Taxation in Ghana have called for an upward adjustment of the excise taxes on tobacco products, alcoholic and sugar-sweetened beverages to help prevent diseases and increase revenue generation.

The dialogue was on the theme “Enhancing Excise Taxation for Public Health Protection and Revenue Mobilisation.”

The event was designed to educate civil society organisation (CSO) advocates and experts on the benefits of excise taxes, particularly their positive effects on the nation’s health and wealth.

The goal was to gather support to strengthen and maintain the progress made, especially regarding taxes on health-harming products.

Additionally, it sought to explore opportunities for increasing public awareness and understanding of excise taxes, while clarifying the distinction between these taxes and other forms of taxation.

This clarification is crucial, as harmful product industries have often misrepresented excise taxes to gain public sympathy.

The event was co-organised by Revenue Mobilisation Africa, Vision for Alternative Development – Ghana (VALD), and the CSOs Budget Forum, with funding from the Tax Justice Network Africa.

During a presentation, Mr. Richard Ameevor, a consultant, stated, explained that excise duty (or excise tax) is a a tax levied on the production, sale, or consumption of specific products, such as alcoholic beverages, tobacco, sugar-sweetened drinks, petroleum products, and luxury items.

“It is also imposed on imported products to compensate for the internal levy on goods of like nature,” he said.

Mr. Ameevor pointed out that excise tax is a single stage tax, and it is paid once either by the manufacturer or importer when the goods are removed, loaded onto a conveyance at the factory gate in Ghana or at the point of entry.

“Unlike general sales taxes or VAT (Value Added Tax), which are broad-based and apply to most goods and services, excise taxes are indirect taxes targeted at particular products (often regarded as non-essential or harmful to health and the environment),” he said.

He stated that the purpose of excise taxation is for revenue generation and health promotion (and social policy), and that they are crucial to government to finance public services like healthcare, education among others.

“They are designed to discourage the consumption of harmful goods, thereby reducing the prevalence of health issues like smoking-related diseases, alcoholism, and obesity,” the consultant said.

He stated: “It works on the principle of price elasticity – as the price of a product increases, demand generally decreases. Also support social policy goals such reducing environmental pollution by taxing fuel among others.”

Mr. Ameevor highlighted that excise taxes are in line with global initiatives aimed at reducing harmful consumption patterns and align with ECOWAS protocols, which mandate the application of both ad valorem and specific duties on tobacco products.

He acknowledged the challenges in implementing such taxes but emphasized that excise taxation presents a promising route to promoting both public health and economic stability in Ghana. He urged for stronger enforcement of the laws governing these taxes to maximize their impact.

“The taxes must be balanced to achieve the dual goals of revenue generation and public health promotion, and that the revenue should be used to fund public education on the harms of alcohol, tobacco, and sugar-sweetened beverage consumptions.”

Mr. Labram Musah, Executive Director of Programmes of VALD presented the overview of the Framework Convention on Tobacco Control (FCTC) and stressed Article six; “Price and Tax measures to reduce the demand for tobacco – (increase tax and price).

He said the article addresses the use of price and tax measures as effective tools for reducing tobacco consumption.

“These fiscal policies aim to discourage the uptake and continuation of tobacco use, particularly among vulnerable populations such as youth and low-income groups,” he stated, and that; “Higher tobacco taxes lead to increased prices, making tobacco products less affordable, thereby reducing demand.”

The article also emphasizes the importance of using revenues from tobacco taxes to fund health programmes and tobacco control initiatives.

Mr. Musah said: “Countries are encouraged to adopt evidence-based tax policies, ensure transparency in the use of revenues, and align these measures with their broader public health goals to achieve sustainable reductions in tobacco use.”