An evidence-based research report titled “Advancing Tobacco Taxation for Improved Public Health in Ghana” has called on the Ministry of Finance to significantly increase tobacco excise taxes as part of efforts to reduce consumption and strengthen public health outcomes.
The report recommends that tobacco excise taxes be raised so that they account for at least 70 per cent of the retail price of cigarettes and 75 per cent of total taxes, noting that current levels fall short of international health standards.
According to the report, post-2023 tax levels stand at approximately 47 per cent excise and 65 per cent total taxes, a situation it says weakens Ghana’s efforts to curb tobacco use.
It further proposed a sharp increase in the specific excise tax, stating:
“To reach recommended levels, the specific excise tax should rise from the current GHS 0.28 per cigarette to GHS1.00 per cigarette (i.e., GHS20 per pack of 20 cigarettes) by December 2026, with subsequent annual increases equal to the greater of 10 per cent or inflation and exchange rate each year.”
The report explained that adopting such measures would align Ghana with World Health Organization (WHO) guidelines and global best practices, particularly for low- and middle-income countries.
The study was initiated by the Vision for Accelerated Sustainable Development (VAST-Ghana) and launched at a stakeholder engagement in Accra. Participants included representatives from the Ministry of Health, Ministry of Finance, Ghana Revenue Authority (GRA), Food and Drugs Authority (FDA), civil society organisations, and academia. The initiative was supported by the Global Health Advocacy Incubator (GHAI).
It also called for the introduction of automatic tax adjustments to ensure tobacco prices keep pace with inflation, currency depreciation, and income growth.
The report warned that without such indexing mechanisms, tobacco products could become increasingly affordable over time, undermining both public health objectives and government revenue.
Dr Alex Moyem Kombat, Assistant Commissioner for Research and Policy at the GRA, cautioned against proposals to earmark tobacco tax revenues for health purposes, stating:
“Calling for earmarking of revenue from tobacco excise taxes for health purposes would be a venture in futility.”
He explained that all tax revenues are paid into the Consolidated Fund, from which withdrawals can only be approved by Parliament.
Dr Michael Boachie, lead consultant for the study, stressed the need for coordinated institutional action. He urged the Ministry of Finance to draft legislation establishing a GHS1.00 per cigarette tax framework, while Parliament enacts indexing provisions and enforcement agencies strengthen efforts against illicit trade.
He further called on the Ministry of Health and FDA to expand tobacco control interventions and ensure adequate funding for non-communicable disease (NCD) programmes.
Mr Labram Musah, Executive Director of VAST-Ghana, highlighted the public health impact of tobacco use, noting that it contributes to approximately 6,700 deaths annually in Ghana, largely from cardiovascular diseases, cancer, and respiratory conditions.
He also expressed concern over the growing use of e-cigarettes, vapes, and shisha among young people, describing it as a rising public health threat that requires urgent policy intervention.
“Government has shown credible leadership in tobacco control measures, yet the products are still too affordable as Ghana’s excise tax regime has not kept pace with inflation and income growth.” He said.
Mr Musah further recommended that tobacco and alcohol-related revenues be integrated into the Ghana Medical Trust Fund (GMTF) and other national health financing initiatives to support long-term healthcare delivery.