The Vision for Accelerated Sustainable Development and other civil society organisations have called on the government to uphold its commitment to improving public health.
They have also urged the government to disregard the Food and Beverages Association of Ghana’s (FABAG) call for the reversal of the excise tax on sugar-sweetened beverages (SSB) and other taxes.
The rest of the organizations are the Health Advocacy Network for Health Promotion and the Ghana NCD Alliance.
The group made the call in a joint statement signed by Mr Labram Musah, Executive Director, Vision for Accelerated Sustainable Development, Ghana Convenor, Tax Advocacy Network for Health Promotion, and National Coordinator, Ghana NCD Alliance.
They said, “We call on the government through the Ministry of Finance, to disregard the FABAG’s demand to reverse excise taxes in favour of private industry profit.”
The statement said that public health must not be sacrificed for commercial interests.
It said, “Instead of scrapping the excise tax, we recommend an upward review to discourage the use/consumption of health harming products, particularly among young people and children.”
It emphasized that the excise tax, instituted under the Excise Duty (Amendment) Act 2023 (Act 1108), is a crucial public health measure designed to combat the rising tide of non-communicable diseases (NCDs) in Ghana.
The Ghana Revenue Authority (GRA) reports that excise tax revenue has significantly increased and that the total excise tax revenue from SSB was GHc228.62 million in 2012, GHc406.02 million in 2017, and GHc735.46 million in 2022.
The statement said that following the introduction of a new tax in April 2023, revenue soared to GHc1,325.57 million in 2023 (Source: GRA, 2023).
It said, “Overall, government revenue from excise duties on health-harming products such as tobacco, alcohol, and SSBs has increased significantly since the introduction of the excise tax in 2023.
“The excise taxes on these health-harming products align with international best practices and are recommended by the World Health Organisation ‘Best Buys,’ the World Bank, United Nations Development Programme, and the ECOWAS Directive on Harmonisation of Excise Duties on Tobacco Products
It stated, “The excise tax on SSBs has emerged as a proven public health intervention to combat the growing burden of NCDs such as obesity/overweight, type ‘2’ diabetes, cardiovascular diseases, and oral/dental health issues.
“The stark reality is that NCDs are the leading cause of death in Ghana, accounting for an alarming 43 per cent of all deaths, as reported by the WHO,” the statement said.
It stated, “The President boldly outlined his administration’s commitment to tackling NCD crises, including the establishment of MahamaCare.
“The scrapping of the excise tax will defeat the President’s commitment to the fight against NCDs. We reiterate that it is not just about revenue generation but a critical policy decision to safeguard public health and curb the NCD epidemic.
“Over 47 countries and 16 smaller jurisdictions have implemented SSB taxes, demonstrating a growing global commitment to reducing excessive sugar consumption”
The statement said that in 2024, Mexico introduced a 10 percent tax on SSBs, leading to a 37 percent reduction in purchases of taxed beverages between 2012 and 2016, and that the greatest reduction occurred among lower-income groups, who were at higher risks for NCDs.
By Albert Allotey.
