Accra, July 20, 2026 — Vision for Accelerated Sustainable Development Ghana (VAST Ghana) has called on the Government to introduce bold excise tax reforms in the 2026 Mid-Year Budget Review to strengthen public health outcomes and fiscal resilience.
The organisation commended the Ministry of Finance and the Ghana Revenue Authority for implementing the Excise Duty Amendment Act of 2023, describing the legislation as a landmark reform that has demonstrated how evidence-based health taxes can simultaneously improve public health and generate revenue.
According to VAST Ghana, tobacco excise revenue more than doubled from approximately GH¢176 million in 2022 to GH¢371 million in 2023, representing a 107 percent increase following the implementation of a hybrid tax system.
The organisation said tobacco excise revenue had further risen to GH¢713 million by 2025, representing a 305 percent increase over the 2022–2025 period. Excise tax revenue from sugar-sweetened beverages also reached GH¢1.081 billion in 2023 and GH¢1.675 billion in 2024.
Despite the gains, VAST Ghana said more ambitious measures were required to address the growing health and economic burden associated with tobacco, alcohol, unhealthy diets and ultra-processed foods.
The organisation noted that tobacco use kills more than 6,700 people annually in Ghana, while tobacco-related economic costs were estimated at GH¢668 million in 2019 alone.
It further said non-communicable diseases associated with tobacco, alcohol, ultra-processed foods and unhealthy diets now account for more than 94,000 deaths annually, representing over 45 percent of all fatalities in Ghana.
To address the situation, VAST Ghana has urged the Government to transition towards a predominantly specific tax system for tobacco and increase the specific excise tax from the current GH¢0.28 per cigarette to GH¢1.00.
The organisation said the measure would help move total tobacco taxes towards the World Health Organization’s benchmark of at least 70 percent of retail prices.
It also called for the automatic annual indexing of the specific tobacco tax to inflation and GDP growth to preserve its effectiveness over time.
Other recommendations include replacing the current paper tax stamp with a digital stamp to strengthen enforcement, as well as prohibiting the taxation of e-cigarettes in line with the Public Health Act of 2012, which VAST Ghana said already bans non-tobacco products.
Beyond tobacco, the organisation recommended the introduction of a hybrid excise tax system combining ad valorem and specific elements for alcohol, sugar-sweetened beverages and other unhealthy products.
VAST Ghana also called for excise taxes on ultra-processed foods high in sodium, sugar, unhealthy fats and additives, which it identified as major contributors to Ghana’s growing non-communicable disease burden.
The organisation further advocated for a significant portion of health tax revenues to be earmarked for public health priorities, including non-communicable disease prevention, health promotion, smoking cessation programmes, public health infrastructure, free primary healthcare and the Ghana Medical Trust Fund.
Drawing lessons from African countries, VAST Ghana cited Ethiopia’s 2026 allocation of more than 23 million Ethiopian birr for tobacco control through its Food and Drug Authority, alongside an allocation of approximately 120 million birr by Addis Ababa for local health initiatives.
According to the organisation, such earmarking could create a sustainable cycle in which revenue generated from harmful products is reinvested in protecting and improving the health of the population.
VAST Ghana said excise tax reforms also presented a significant economic opportunity, citing estimates that every dollar invested in tobacco control could yield a US$7 return, while alcohol control could deliver a US$9 return and interventions targeting unhealthy diets could generate returns of up to US$14 through reduced healthcare costs and improved productivity.
The organisation added that the full implementation of World Health Organization Framework Convention on Tobacco Control measures could prevent 20,000 tobacco-related deaths by 2037 and save approximately GH¢1.3 billion in economic losses.
Executive Director of VAST Ghana, Mr. Labram Musah Massawudu, said Ghana could not allow industries that profit from addiction and disease to dictate national tax policy.
“The 2023 reforms were a great start, but to truly protect our youth and the poor, we must increase the excise tax on tobacco, implement a hybrid system for alcohol and sugar products and introduce excise tax on ultra-processed foods, and ensure that the money collected goes directly back into saving Ghanaian lives,” he said.
VAST Ghana said it remained ready to work with the Ministry of Finance, Ghana Revenue Authority, Ministry of Health, Food and Drugs Authority and other stakeholders to translate the recommendations into action.
It also urged policymakers to remain firm against industry arguments that overstate the risks of illicit trade and economic disruption, saying such challenges should instead be addressed through stronger enforcement, track-and-trace systems and improved governance.
The organisation concluded that progressive excise taxation was not punitive but a pragmatic and forward-looking strategy capable of building a healthier, wealthier and more resilient Ghana.
