Ghana: Reducing Non-Communicable Diseases Burden - Ghana Can Bag Gh¢3.5 Bn Revenue ...From Alcohol, Tobacco and Sugar-Sweetened Beverage Taxes to Cater for Govt Health Spending - Who

The consumption and use of alcohol, sugar-sweetened beverages and tobacco products have been identified as accounting for more than 17,000 deaths annually in Ghana.

This according to the World Health Organisation (WHO) and its partners could be averted if government increased health taxes on these products.

Health taxes are taxes imposed on unhealthy products, to reduce consumption and save lives while raising much-needed revenue for health spending by government.

A study by the WHO and Ministry of Health, revealed that implementing specific excise taxes on alcohol, tobacco and sugar-sweetened beverages would not only reduce the non-communicable disease burden (NCDs) in the country but also generate an additional GH¢3. 5 billion in revenue by the end of 2023.

Already the new Excise Duty and Excise Tax Stamp (amendment) bill passed by parliament in April this year which imposes a 20 per cent tax on cigarettes, e-smoking devices and sweetened beverages, spirits and wines is projected to rake in about GH¢400 million annually.

Presenting findings of the report, an economist at the WHO Health Promotion Department, Mark Goodchild, said while health taxes were significant to reduce over consumption of products with negative health impact, reduce the healthcare burden and address health inequities; it could incentivise product reformulation for larger public health gains.

He recommended that the government worked with its partners to increase awareness on the harmful effects of consuming tobacco, alcohol and sugar-sweetened beverages and help dispel misinformation on such products.

"Government must support the consumption of health products and put in place measures to encourage access and affordability to reduce the tendency of unhealthy ones. Education, awareness creation, fiscal policy and subsidies play a role," he said.

A Deputy Minister of Health, Alhaji Mahama Seini, in a remark noted that the concept of health tax was crucial to sustainable health financing beyond the traditional budgetary allocation to the sector.

"For us, we are happy that the health taxes will promote healthier choices. These products contribute highly to NCDS and in as much as we admit that the increases in taxes on these products many reduce consumption, it presents a good opportunity to expand health-related interventions focused on NCD prevention, early detection and treatment to mitigate future financial burden on individuals and the state," he noted.

The Deputy Minister pleaded with the Finance Ministry to allocate revenue generated from the health taxes to the Ministry to prevent and manage NCDs.

"Together, we can create a sustainable, equitable and resilient healthcare system that will safeguard the health and wellbeing of our people for generations to come," he stated.

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