Ghana is estimated to be losing close to GH¢97 million, due to tobacco related illnesses.

This cost to the country’s economic and social development, emanates from the gradual upsurge in tobacco products use.

The Vision for Alternative Development (VALD) has since been raising red flag about the dangers that tobacco use poses to public health.

In an effort to reduce the negative impact of tobacco on public health and the economy at large, VALD is partnering Tax Justice Network Africa to engage the Ghana Revenue Authority (GRA) on the subject matter.

In a statement issued by VALD to gather momentum ahead of the engagement slated for 25 to 26 January, discussions will centre on tobacco control taxes.

The following is the full statement:

The upsurge in consumption of tobacco and its related products is not only hazardous to the well-being
of the consumers and non-consumers but also puts a heavy financial and social burden on the economic
health of Ghanaians.

The associated economic cost and burden of smoking in Ghana is estimated at Gh¢97million, making tobacco use a major public health threat. Over the years, the price of tobacco products have been very low, making it affordable and accessible even for children.

However, tobacco taxation has not been prioritised as a means to address the affordability of tobacco; the health related challenges; prevent initiation and as revenue stream to government to support the Ghana Beyond Aid Agenda.

To help address this, the Vision for Alternative Development (VALD) with support from the Tax Justice
Network Africa (TJNA) conducted a study on the Economics of Tobacco Taxation in Ghana.

The scope ofthe study on the Economics of Tobacco Taxation in Ghana was to provide critical evidence for effecting tobacco control friendly tax policies in line with the objectives of the tobacco control laws in Ghana’s Public Health Act (Act 851) which was passed in 2012 as well as Ghana’s obligations under the WHO FCTC.

Evidence shows that taxation is one of the most effective tools to control tobacco use especially among the youth and the low resource settings. There is a significant relationship between price reforms and
consumption, such that an increase in price taxes results in decline in consumption.

While tobacco taxation was the key highlight of the study, other non-tax measures such as pictorial health warnings, smoke free environments, etc. were accounted for.
A revision of the tax structure is essential, however using the ad valorem without including some specific
tax component is disadvantageous. This will go a long way in curbing the tax burden and also tackling
consumption.

This national stakeholders meeting of tobacco control and tax/economic policy experts is aimed at
gaining buy-in from stakeholders on the urgent need to consider tobacco tax as a developmental need
and a tool for development; having national discourse on how to practically and effectively reach the
ultimate goal of adopting an effective tax system that will have the desired impact of health outcomes
and increase in revenue; and gaining the commitments of all stakeholders in the implementation and
enforcement of the proposed outcomes of the study recommendations.

The National stakeholders meeting is expected to convene health, tax, policy and economic institutions
from government, civil society and relevant private sectors for a common goal of making tobacco control
a national priority.