Ghana’s taxation on tobacco welcomed by health ministry

By Omotayo Edubi

The Minister of Health, Mr Kwaku Agyeman-Manu has welcomed a tobacco taxation scheme by the Vision for Alternative Development and the Ghana Revenue Authority to curtail accessibility to tobacco products and generate funds for health promotion.

“This is a great opportunity to accelerate the tobacco control policy implementation in Ghana and contribute to the achievement of the Sustainable Development Goals (SDGs) within and beyond health or well-being,” he said.

Mr Agyeman-Manu welcomed the move in a statement read on his behalf at a national stakeholders meeting on Tobacco Taxation in Ghana, organised by the Vision for Alternative Development (VALD) and the Ghana Revenue Authority (GRA).

It was on the theme: “Effective Tobacco System: A win-win for Ghana’s Economy and Public Health” aimed at having broad-based discussions on how the country wish to progress with respect to tobacco taxation.

The Health Minister said the Ministry was ready to support the ongoing discussions relevant to the adoption of an effective tax system that would have the desired health outcomes and corresponding increase in revenue.

“We all have a responsibility as individuals, government organisations, civil society, non-governmental organisations and stakeholders to make this country and the world a tobacco-free place to live,” he said.

“In this regard, I am delighted to be a part of this initiative and I commend each and every one of you for your continuous collaboration in our vision towards a tobacco-free society.”

Mr Labram Musah, the Director of Projects, VALD, said it was clear that tobacco taxation was one of the most effective ways in addressing access and affordability of tobacco products.

The low pricing of such products remained the industry’s primary tactic for enticing new clients, mostly young people and children, sustaining and addicting new life-long customers.

“In fact the primary focus of the tobacco industry is to encourage young people and children to begin smoking and those trying to quit to continue their deadly addiction,” he said, adding that it was sad that still tobacco was one of the cheapest commodities in Ghana.

“Today with two cedis one can get a packet of 10 sticks of cigarette. A stick of cigarette cost just 30 pesewas. In fact, almost 90 per cent of smokers smoked their first cigarette before the age of 18, and almost a quarter of these individuals began smoking before the age of 10,” Mr Musah said.

He called call on government to stand firm to protect children from being initiated and getting hooked to all forms of tobacco products.

It was important to note that although smokers reacted when prices went up, they reduced their consumption by less than the percentage increase in price, which meant they ended up paying more in tobacco taxes, he said.

“That is why bigger tax increases are more effective. Because of low excise taxes, cigarette prices are far cheaper in many low and middle-income countries compared to high-income countries.”

Mr Musah said based on the evidence from a study conducted by VALD; the Ministry of Finance’s Tax Policy Unit and the GRA should take steps to review the current tobacco tax regime and adopt the most appropriate tax measures that conforms to the World Health Organisation’s recommendations.

It must also conform to the ECOWAS Directives to shift from the current ad-valorem tax to a hybrid tax system (specific and ad-valorem tax).

Mr Kwabena Appau, the Head of Excise Tax, GRA, said the report on the study on Economics of Tobacco Control in Ghana, carried out by VALD, was good for tax implementers and industry players because it contained a lot of information and analysis, which were useful.

“So it gives us much more information to look at what we have to do and to see whether the track that we have followed over the period in respect of tobacco taxation was the right one for stakeholders.”