2020 Budget: Group calls for increase in taxes on tobacco, alcohol to deter consumers

A group calling itself Vision for Alternative Development,  has expressed concern about what it terms a “rapid increase” in the consumption of tobacco and alcohol in Ghana

The group says the situation is worrying and called on  Government to increase taxes on these products to deter people from consuming them.

According to the 2019 World Health Organization (WHO) report, tobacco kills more than 8 million people annually. Out of this, more than 7 million are as a result of direct tobacco use while around 1.2 million are the result of non-smokers being exposed to second-hand smoke.

But the group contends despite numerous public education campaigns against the use of tobacco and the harmful use of alcohol, many continue to consume the products. This practice they say, puts a heavy financial and social burden on the economic health of Ghana.

“This rise in tobacco and alcohol products use in Ghana is evident in the study conducted by Vision for Alternative Development (VALD) which shows that tobacco and alcohol products are the cheapest commodities sold in Ghana today. For instance, a stick of cigarette cost the smoker only 20 pesewas (USD0.04), with a pack of 10 sticks costing GHS1.50p (USD0.30). A sachet of alcohol costs the drinker 50 pesewas (USD0.10). On the other hand, a number of countries like New Zealand have raised prices up to USD20 per pack of cigarettes, making them very expensive,” a statement by the advocacy group said.

The statement also said: “At 13.02% of retail price, Ghana’s excise tax as a percentage of cigarette price can be significantly increased to meet the WHO minimum benchmark of 70% of retail price. Tobacco products have not received tax increment for 5 years (2015-2019), this is evident in the cost of tobacco products in the country”.

VALD is however predicting that “without appropriate tax actions, the disease burden is going to rise in Ghana, with the worst affected group of persons being the youth, poor and vulnerable”.