The Vision for Accelerated Sustainable Development Ghana (VAST Ghana) has commended Parliament for passing the Excise Tax Bill, 2026, describing the legislation as an important step towards using taxation to protect public health while mobilising domestic revenue.

In a press statement dated August 7, 2026, released by VAST Ghana Communications Manager Jennifer Maame Ama Owusu, the organisation also praised the Ministry of Finance for its proposed reforms but called for further changes to ensure the excise tax regime effectively discourages the consumption of health-harming products.

VAST Ghana said the reforms were particularly important at a time when Ghana was facing a growing burden of non-communicable diseases (NCDs), rising healthcare costs and declining external health financing.

It cited data indicating that NCDs account for about 45 per cent of deaths in Ghana, placing pressure on the health system, household incomes, workforce productivity and the wider economy.

Call for broader alcohol tax reforms

The organisation welcomed the move to change the excise tax structure for spirits from a purely ad valorem system to a hybrid model combining specific and ad valorem rates.

However, it urged the government to extend the hybrid system to all alcoholic beverages, including beer, wine, ciders and ready-to-drink alcoholic products.

VAST Ghana argued that a uniform approach would reduce opportunities for consumers to switch to cheaper, lower-taxed alternatives while improving both health and revenue outcomes.

It also recommended the introduction of minimum unit pricing for alcohol as a complementary measure to prevent the sale of extremely cheap alcoholic products.

Concern over fruit juice exemption

VAST Ghana further called for a review of the decision to remove the 20 per cent excise tax on locally produced natural fruit juices.

While acknowledging the policy objective of supporting local industry, it warned that some fruit juices can contain significant amounts of free or concentrated sugars, which may contribute to excessive sugar consumption and NCDs.

The organisation proposed that beverage taxation should instead be based on free-sugar content, irrespective of whether the product is locally produced or imported.

It also urged the Food and Drugs Authority (FDA) to strengthen product standards, sugar-content labelling and compliance monitoring to prevent manufacturers from reclassifying high-sugar products as fruit juices or nectars to avoid taxation.

Remove e-cigarettes from excise tax schedule

VAST Ghana also objected to the continued inclusion of electronic cigarettes in the excise tax framework.

It argued that Ghana's Public Health Act, 2012 (Act 851), and Tobacco Control Regulations, 2016, prohibit the manufacture, importation, advertisement, sale and distribution of electronic cigarettes for recreational use.

According to the organisation, taxing products that are prohibited under Ghanaian law creates policy inconsistencies and could be misconstrued as government recognition of a legal market for such products.

Push for higher tobacco taxes

The organisation also expressed concern that the Bill does not significantly strengthen tobacco taxation.

It said tobacco use claims more than 6,700 lives annually and costs Ghana more than GH¢668 million each year through healthcare expenditure and productivity losses.

VAST Ghana urged the government to move tobacco taxes towards the World Health Organisation's recommendation that tobacco taxes should account for at least 70 per cent of the retail price of the most popular cigarette brands.

It further called for a portion of health tax revenues to be earmarked for NCD prevention, health promotion, screening and health-system strengthening.