Vision for Accelerated Sustainable Development Ghana (VAST Ghana) has commended Parliament for passing the Excise Tax Bill 2026.
According to VAST the legislation was an important milestone in protecting public health, promoting responsible consumption and strengthening domestic financing for health.
In a statement, the organisation also commended the Ministry of Finance for proposed reforms to the excise tax regime, saying fiscal policy was an important public health tool as Ghana faced a growing burden of non-communicable diseases (NCDs), rising healthcare costs and declining external health financing.
It said well-designed health taxes were among the most cost-effective interventions available to governments and aligned with the World Health Organisation (WHO)’s “3 by 35 Initiative”, which calls on countries to increase the real prices of tobacco, alcohol and sugar-sweetened beverages by at least 50 per cent by 2035 through excise tax increases.
According to VAST Ghana, NCDs accounted for about 45 per cent of deaths in Ghana and placed significant pressure on the health system, workforce productivity, household incomes and the national economy.
It said fiscal measures aimed at discouraging consumption of health-harming products therefore represented a strategic investment in public health and national development.
VAST Ghana particularly welcomed the reform of the excise tax structure for spirits, which shifts from a purely ad valorem system to a hybrid structure combining specific and ad valorem tax rates.
It described the move as a significant public health achievement, saying evidence from countries such as Thailand and the Philippines showed that hybrid excise taxes were more effective in reducing alcohol consumption than ad valorem taxes alone.
The organisation said increasing prices of cheaper alcoholic products, often consumed by lower-income groups, young people and heavy drinkers, could help reduce consumption while limiting manufacturers’ ability to shift consumers towards lower-taxed alternatives.
However, it urged the government to extend the hybrid excise tax structure to all alcoholic beverages, including beer, wine, ciders and ready-to-drink alcoholic products.
It also recommended minimum unit pricing for alcohol to prevent the sale of extremely cheap alcohol and reduce alcohol-related harm.
On the removal of the 20 per cent excise tax on locally produced natural fruit juices, VAST Ghana said the decision, although intended to support local industry, required reconsideration from a public health perspective.
It argued that some fruit juices could contribute significantly to excessive sugar intake and increase the risk of NCDs. It therefore recommended that beverages be taxed according to their free-sugar content, regardless of whether they were locally produced or imported.
VAST Ghana further called for stronger regulatory and monitoring mechanisms to prevent manufacturers from exploiting exemptions by rebranding or reformulating products as fruit juices or nectars while retaining high levels of free sugars.
It said clear product standards, mandatory disclosure of sugar content and regular compliance monitoring by the Food and Drugs Authority were necessary to protect the integrity of the tax regime.
The organisation also expressed concern over the continued inclusion of electronic cigarettes in the excise tax framework, arguing that such products were prohibited under the Public Health Act, 2012 (Act 851), and the Tobacco Control Regulations, 2016.
It also recommended that a meaningful portion of health tax revenues be earmarked for NCD prevention, health promotion, screening and health system strengthening.
BY TIMES REPORTER
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