Reconsider 20% excise tax removal on locally produced fruit juices – VAST Ghana to Finance Ministry

Ghana's Vision for Accelerated Sustainable Development (VAST Ghana) has called on the Finance Ministry to reconsider removing the 20% excise tax on locally produced fruit juices. The group fears that this exemption could harm Ghana's public health goals and weaken the government's ability to prevent non-communicable diseases (NCDs). Ms Jennifer Maame Ama Owusu, VAST Ghana's Communications Manager, urged the Ministry of Health to address the tax cut immediately.

The statement from VAST Ghana argues that removing this tax might undermine the sustainability of the President's Ghana Medical Trust Fund and the Free Primary Health Care Policy. These initiatives aim to improve healthcare access and focus on disease prevention and early intervention. The organization emphasized the need for a careful review of the decision, noting that supporting local businesses should not come at the expense of public health.

VAST Ghana also questioned the clarity and strength of the definition of fruit juice that the Finance Ministry plans to use for the exemption. They pointed out that not all fruit juices are healthy alternatives to sugary drinks. The organization stressed that the sugar content in these beverages can be significant, leading to weight gain, obesity, type 2 diabetes, and other diet-related NCDs.

Exempting locally produced fruit juices without considering their sugar content could create inconsistencies in Ghana's public health tax policies.

Ghana has shown global leadership in tackling NCDs, and maintaining this position requires continued investment in effective preventive health policies, according to VAST Ghana. They stressed that any changes to fiscal policies must protect public health, ensuring that the overall tax burden on harmful products remains high enough to discourage consumption.

The organization highlighted that excise taxation is a powerful tool in public health, capable of reducing harmful consumption while generating revenue for national development. This approach aligns with the World Health Organization's '3 by 35' initiative, which aims to increase taxes on tobacco, alcohol, and sugary drinks to 2035.

VAST Ghana urged the Ministry of Finance to adopt a more evidence-based approach by taxing beverages based on their sugar content, regardless of their origin. This would promote healthier alternatives, create incentives for manufacturers to produce lower-sugar products, and support Ghana's public health and revenue goals.