Story by Eugene Nyarko Jnr. l Accra l Thursday, September 10, 2026 —
Vision for Accelerated Sustainable Development, Ghana (VAST Ghana) has commended the Ministry of Finance for demanding evidence to support claims by Accra Brewery PLC that recent changes to the beer excise duty regime could put about 2,000 jobs at risk.
The civil society organisation said claims of massive job losses, reduced investment and threats to local industries must be supported by credible evidence and subjected to rigorous scrutiny, particularly when they relate to fiscal measures designed to protect public health.
In a statement issued yesterday, VAST Ghana said the company had not provided the methodology, base year, price elasticity assumptions or definition used to arrive at the projection that 2,000 jobs were at risk.
It said the Ministry’s response set an important standard for public policy-making, adding that commercial claims should be examined, economic projections tested and public health evidence given appropriate weight.
VAST Ghana said the debate over alcohol excise taxation should not focus solely on the economic contribution of the alcohol industry but should also take into account the wider health, social and economic costs associated with alcohol consumption.
It cited the Ghana STEPS Survey 2023, which found that 22.6 per cent of adults aged between 18 and 69 were current alcohol drinkers, with the proportion rising to 30.6 per cent among men.
The survey also found that alcohol consumption was higher among adults in rural areas, at 28.4 per cent, compared with 18.6 per cent in urban areas.
According to VAST Ghana, those figures represented real health, social and economic consequences for individuals, families and communities.
Economic cost
The organisation further cited estimates that while the alcohol industry contributed about $369 million to Ghana’s Gross Domestic Product (GDP) and created approximately 52,000 jobs, the societal cost of alcohol consumption was estimated at $1.2 billion annually.
It said the cost was driven largely by health expenditure, productivity losses and road traffic injuries.
VAST Ghana therefore argued that the economic contribution of the alcohol industry should be assessed alongside the costs borne by society as a result of alcohol-related harm.
It said stronger excise taxation should be viewed as an evidence-based public health intervention rather than an attack on industry or workers.
The organisation also cited the World Health Organisation (WHO), which has identified increased alcohol prices through excise taxation and pricing policies as among the most effective measures for reducing alcohol-related harm.
It said the WHO’s SAFER initiative placed increasing alcohol excise taxes and pricing policies among five high-impact interventions for reducing alcohol-related harm.
VAST Ghana also rejected suggestions that higher alcohol taxes would automatically lead to increased illicit alcohol consumption, saying such claims should be backed by evidence.
It said WHO’s review of alcohol taxation in the European Region had found no automatic relationship between higher taxation and increased illicit alcohol consumption.
It consequently urged the government to tackle illicit trade through effective enforcement, tracking, taxation administration and market surveillance rather than weakening health-protective tax policies.
Four recommendations
As the government prepares the 2027 Budget Statement, VAST Ghana proposed four measures to strengthen Ghana’s excise tax framework.
1. Extend hybrid excise taxation to all alcohol products
VAST Ghana called for the hybrid excise tax system to be extended to all categories of alcohol products.
It said the current reforms under the Excise Tax Act 2026 applied only to wine and spirits, which it described as products largely consumed by higher-income groups whose purchasing power was less affected by tax increases.
It argued that alcoholic beverages more commonly consumed by lower-income groups remained subject to lower excise rates.
The organisation said extending hybrid excise taxation to all alcohol categories would promote greater equity and maximise the public health impact of the policy.
2. Restore the 20 per cent excise tax on fruit juices
VAST Ghana also called for the repeal of the 20 per cent excise tax cut on fruit juices and a review of the definition of fruit juice.
It said the existing definition did not meet global best practices and could create loopholes that undermined the government’s public health objectives.
It therefore urged the government to reinstate the 20 per cent excise tax and adopt a clear and enforceable definition of fruit juice.
3. Increase and index tobacco excise rates
The organisation further called for higher tobacco excise rates and their automatic indexation to inflation and income growth.
It said current tobacco taxes remained below international benchmarks and that increasing the rates and linking them to inflation and income growth would preserve their real value while strengthening health financing.
4. Repeal excise tax on electronic cigarettes
VAST Ghana also called for the repeal of the excise tax on electronic cigarettes, arguing that the current provision created policy incoherence between the Excise Tax Act 2026 and the Public Health Act 2012.
It said repealing the tax would align fiscal measures with existing public health legislation and provide greater clarity on the regulation of novel nicotine products.
Population health
VAST Ghana said Ghana’s growing burden of non-communicable diseases (NCDs) required decisive action and urged the government to ensure that fiscal policies affecting health-harming products were guided by evidence.
It said the contribution of an industry to employment and national output should not be considered in isolation from the wider costs associated with its products.
“Stronger alcohol excise taxation is not an attack on industry or workers,” the organisation said, stressing that it was an evidence-based policy intervention aimed at reducing preventable harm, protecting vulnerable populations, generating domestic revenue and ensuring that commercial interests did not outweigh the health and economic interests of Ghanaians.
VAST Ghana consequently called on the Ministry of Finance and other relevant agencies to remain resolute, protect the integrity of the excise tax reform process and strengthen excise taxation in line with global best practices and WHO recommendations.
