VAST Ghana commends Parliament for passing Excise Tax Bill 2026

VAST Ghana praised the Parliament for approving the Excise Tax Bill 2026. The legislation was deemed crucial for safeguarding public health, encouraging responsible consumption and enhancing domestic financing for healthcare. The organization also acknowledged the Ministry of Finance for proposed modifications to the excise tax system, emphasizing that fiscal policy serves as a vital public health instrument in light of Ghana's escalating burden of non-communicable diseases (NCDs), escalating medical expenses, and dwindling external health funding.

VAST Ghana pointed out that well-crafted health taxes are among the most financially efficient strategies for governments and adhered to the World Health Organisation's (WHO) "3 by 35 Initiative," which urges countries to escalate the real prices of tobacco, alcohol, and sugar-sweetened beverages by no less than 50 percent by 2035 through excise tax hikes.

NCDs constitute approximately 45 percent of fatalities in Ghana, imposing substantial strain on the healthcare system, workforce productivity, household earnings, and the national economy. VAST Ghana expressed its support for the reform of the excise tax framework for spirits, changing from a purely ad valorem system to a hybrid system incorporating specific and ad valorem tax rates.

Evidence from countries like Thailand and the Philippines indicated that hybrid excise taxes were more successful in curbing alcohol consumption than ad valorem taxes alone. The group urged the government to expand the hybrid excise tax structure to encompass all alcoholic beverages, including beer, wine, ciders, and ready-to-drink alcoholic products.

They also proposed minimum unit pricing for alcohol to deter the sale of excessively cheap alcohol and lessen alcohol-related damage. VAST Ghana criticized the elimination of the 20 percent excise tax on locally produced natural fruit juices, asserting that the choice, although intended to aid the local industry, necessitated reassessment from a public health standpoint.

They argued that certain fruit juices could notably contribute to excessive sugar consumption, raising the risk of NCDs. Consequently, they proposed that beverages be taxed based on their free-sugar content, irrespective of local or imported production. VAST Ghana also advocated for enhanced regulatory and monitoring systems to prevent manufacturers from capitalizing on exemptions by rebranding or reformulating goods as fruit juices or nectars while maintaining high levels of free sugars.

They voiced apprehension regarding the persistent incorporation of electronic cigarettes in the excise tax framework, asserting that such items were prohibited under the Public Health Act, 2012 (Act 851), and the Tobacco Control Regulations, 2016. They also suggested that a substantial portion of health tax revenues should be allocated to NCD prevention, health promotion, screening, and healthcare system enhancement.