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 t
The report indicates that 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.
It further notes that 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 stated 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 stated 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.
