Public health advocacy group Vision for Accelerated Sustainable Development, Ghana (VAST-Ghana), is calling for a significant overhaul of the country’s excise tax system, proposing sharp increases in taxes on tobacco and alcohol as part of broader reforms under review by the Ministry of Finance.
The organisation has recommended raising the specific excise duty on cigarettes from GH¢0.28 per stick to GH¢1.00, a move it says would push total taxes on cigarettes to at least 75 per cent of the retail price in line with global health recommendations.
It is also proposing an upward revision of the tax rate on akpeteshie from 20 per cent to 40 per cent, alongside broader adjustments to alcohol and sugar-sweetened beverage taxation structures.
The proposals were presented during a stakeholder engagement convened by the Ministry of Finance as part of consultations on the Draft Strategic Framework and proposed legislation for Non-Tax Revenue (NTR) mobilisation and management.
Led by Executive Director Labram Musah, VAST-Ghana said Ghana’s current excise regime remains below World Health Organisation (WHO) benchmarks, particularly the recommendation that tobacco taxes should account for at least 70 per cent of retail price.
Mr Musah said evidence from Ghana’s hybrid tobacco taxation system shows that higher excise duties can significantly boost government revenue while discouraging consumption, noting that tobacco excise revenue has previously increased by over 300 per cent following reforms.
He further argued that alcohol taxation in Ghana does not adequately reflect alcohol by volume (ABV), meaning stronger alcoholic products are not taxed in proportion to their potential health impact. The group is therefore recommending a combined specific and ad valorem tax structure, including a minimum duty of GH¢10 per litre of alcohol.
VAST-Ghana also called for reforms to the sugar-sweetened beverage tax, urging that it be linked to sugar content in order to encourage product reformulation and reduce consumption.
On enforcement, the group raised concerns about the use of paper-based excise stamps, describing them as vulnerable to counterfeiting and inefficiencies. It proposed the adoption of a digital track-and-trace system aligned with international standards under the WHO Framework Convention on Tobacco Control.
The organisation further recommended ending taxation on electronic cigarettes and e-liquids, arguing that their legal status under Ghana’s Public Health Act, 2012 already prohibits them, and that taxing them could create regulatory inconsistencies.
Additional proposals include granting the Ghana Revenue Authority automatic powers to adjust excise taxes annually in line with inflation, removing exemptions on tobacco imports from ECOWAS and duty-free channels, and introducing a minimum cigarette tax equivalent to US$2 per pack.
VAST-Ghana also suggested earmarking a portion of excise tax revenues to fund non-communicable disease prevention and broader health promotion programmes.
The group says its proposals aim to align Ghana’s tax system with international best practice while strengthening both public health outcomes and domestic revenue mobilisation.
