The Vision for Alternative Development (VALD) has expressed disappointment in the Ministry of Finance for excluding measures to increase taxes on tobacco products in the 2022 Budget and Policy statement.

It said the health implications of tobacco on the lives of the citizen are enormous, therefore, the introduction or increment of taxes on tobacco products was a chance for Ghana to address part of the negative effects of tobacco.

In a press release signed by the VALD Executive Director of Programme, Labram M. Musah, it noted that there is no cap on how much percentage should be slapped on tobacco products in the country, therefore, wondered why it was excluded.

“We are hopeful that the government would respond positively to our call to take this bold decision that will rake in the benefits of reducing consumption, improving citizens health, protect the vulnerable youth and poor people from use/abuse of tobacco and other tobacco products, generate revenue to supplement health budgets, effectively regulate tobacco trade and consumption locally while also improving the international rating of Ghana in contributing to the global WHO goal of a 30% prevalence reduction in tobacco consumption,” it said.

It argued that besides the negative effects of tobacco on public health and human capital, household expenditure, as well as the national economy, are also affected.

Accordingly, it added that tobacco-related challenges go beyond impacting healthcare costs, work absenteeism, obstruction from the performance of critical social roles like parenting, and other individual or family responsibilities.

It stressed that the proposed 30% increment in tobacco products tax will go a long to discourage many, especially the poor from using the products because most financially challenged persons are very sensitive to price.

The VALD and its “partners are hopeful [that] this evidence-backed and rights-based call, benched on further dialogic discussion platforms will convince the MOF to consider shifting from the current ad-valorem to adopting a specific tax or a hybrid model for tobacco taxation in Ghana, which will increase the tax rates and relatively increase the prices of tobacco products and cause a reduction in consumption and health risks.

“This will also significantly increase tax revenue to manage existing and projected tobacco-related disease and non-communicable disease cases and provide adequate resources for regulating the tobacco industry in Ghana.”

By Akutu Dede Adimer