VAST Ghana Commends Parliament for Passing Excise Tax Bill 2026

Vision for Accelerated Sustainable Development Ghana (VAST Ghana) has lauded Parliament for passing the Excise Tax Bill 2026, hailing it as a significant achievement for public health protection, responsible consumption promotion, and strengthening domestic health financing. The organization also commended the Ministry of Finance for its proposed reforms to the excise tax system, emphasizing that fiscal policy is a crucial tool in addressing Ghana's rising burden of non-communicable diseases (NCDs), escalating healthcare costs, and diminishing external health funding.

VAST Ghana highlighted that well-designed health taxes are among the most cost-effective interventions available to governments. These measures align with the World Health Organization's (WHO) “3 by 35 Initiative,” which encourages countries to increase the real prices of tobacco, alcohol, and sugar-sweetened beverages by at least 50% by 2035 through excise tax hikes. The organization pointed out that NCDs account for approximately 45% of deaths in Ghana, placing considerable pressure on the health system, workforce productivity, household incomes, and the national economy. Therefore, fiscal measures aimed at discouraging the consumption of unhealthy products are seen as a strategic investment in public health and national development.

The organization particularly welcomed the reform of the excise tax structure for spirits, which transitions from a purely ad valorem system to a hybrid model combining specific and ad valorem tax rates. Citing evidence from countries like Thailand and the Philippines, VAST Ghana stated that hybrid excise taxes are more effective in curbing alcohol consumption than ad valorem taxes alone. This shift helps increase prices of cheaper alcoholic products, often favored by lower-income groups, young people, and heavy drinkers, thereby reducing consumption and limiting manufacturers' ability to switch consumers to lower-taxed alternatives.

However, VAST Ghana urged the government to extend this hybrid excise tax structure to all alcoholic beverages, including beer, wine, ciders, and ready-to-drink products. They also recommended implementing minimum unit pricing for alcohol to prevent the sale of excessively cheap alcohol and mitigate alcohol-related harm. Regarding the removal of the 20% excise tax on locally produced natural fruit juices, VAST Ghana suggested reconsideration from a public health standpoint, noting that some fruit juices contribute significantly to excessive sugar intake and increase NCD risk. They recommended taxing beverages based on their free-sugar content, irrespective of origin.