Vision for Accelerated Sustainable Development Ghana (VAST Ghana) has called for a comprehensive overhaul of Ghana’s excise tax regime, urging the government to increase taxes on tobacco products, alcohol and sugar-sweetened beverages as part of efforts to curb the growing burden of non-communicable diseases (NCDs) while boosting domestic revenue mobilisation.

The appeal was made during a stakeholder engagement organised by the Ministry of Finance on the Draft Strategic Framework and Proposed Overarching Legislation for Non-Tax Revenue Mobilisation and Management.

The engagement formed part of broader government efforts to strengthen domestic resource mobilisation, improve public financial management and establish sustainable financing mechanisms to support national development priorities.

It brought together representatives from government institutions, development partners, civil society organisations and the private sector to deliberate on proposed reforms.

Presenting VAST Ghana’s position, the organisation’s Executive Director, Mr Labram Musah, highlighted the significant health and economic costs associated with tobacco use, harmful alcohol consumption and excessive intake of sugary beverages.

He said the increasing prevalence of NCDs continues to place a heavy burden on households, the healthcare system and national productivity, making stronger health taxes both a public health and economic imperative.

The organisation also expressed concern about the growing presence of electronic cigarettes and emerging nicotine products on the Ghanaian market.

According to VAST Ghana, such products are often marketed in flavours and designs that appeal to young people despite evidence from the World Health Organisation (WHO) indicating that they are addictive and harmful to health.

Drawing on findings from several international and local reports, including the WHO Global Report on the Use of Alcohol Taxes 2025, the WHO Global Report on the Use of Sugar-Sweetened Beverage Taxes 2025, the Economics for Health Cigarette Tax Scorecard and a 2026 report on tobacco taxation in Ghana, VAST Ghana argued that the country’s current excise tax framework falls below internationally accepted standards.

The organisation noted that WHO recommends excise taxes should constitute at least 70 per cent of the retail price of tobacco products, a benchmark Ghana has yet to attain.

It further indicated that excise taxes on alcohol and sugar-sweetened beverages remain below recommended levels and are therefore not generating the desired public health and revenue outcomes.

VAST Ghana also observed that Ghana’s alcohol tax structure does not adequately account for alcohol content, while taxes on sugary drinks are not linked to sugar levels despite evidence suggesting sugar-based taxation encourages manufacturers to reduce sugar content and promotes healthier consumer choices.

The organisation cited the success of Ghana’s hybrid tobacco taxation system as evidence that stronger excise taxes can simultaneously improve public health and generate substantial government revenue.

It said the introduction of a specific excise duty of 0.28 pesewas per cigarette stick contributed to an increase of more than 300 per cent in tobacco excise revenue, generating over GH¢700 million.

VAST Ghana argued that further tax increases could produce even greater gains while discouraging the consumption of harmful products.

Among its recommendations, the organisation called for an immediate increase in the specific excise tax on cigarettes from GH¢0.28 per stick to GH¢1.00 per stick, equivalent to GH¢20 per pack, to ensure total taxes account for at least 75 per cent of the retail price.

It also proposed the introduction of an alcohol-by-volume (ABV)-based excise duty for alcoholic beverages, with a minimum specific duty of GH¢10 per litre of pure alcohol and higher rates for stronger products.

Other recommendations included granting the Ghana Revenue Authority authority to automatically adjust tobacco taxes annually in line with inflation and economic growth, increasing the excise tax rate on akpeteshie from 20 per cent to 40 per cent, and removing tax exemptions on tobacco imports originating from ECOWAS member states and duty-free outlets.

VAST Ghana further advocated the modernisation of Ghana’s excise tax stamp system, arguing that the current paper-based system remains vulnerable to counterfeiting, reuse, damage and verification challenges.

The organisation urged the Ministry of Finance to adopt a digital tax stamp and track-and-trace system in line with international protocols under the WHO Framework Convention on Tobacco Control, saying such a system would improve enforcement, combat illicit trade and enhance revenue collection.

In addition to tax reforms, VAST Ghana proposed that a portion of excise tax revenue be earmarked to support NCD prevention programmes and broader health promotion initiatives.

The organisation said health taxes have become an increasingly important policy tool globally, helping governments reduce the consumption of harmful products while generating resources to finance healthcare interventions and other development priorities.

It described the stakeholder engagement as an important platform for advancing discussions on sustainable financing and strengthening the role of fiscal policy in promoting both economic development and public health in Ghana.