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72% of Ghanaians support taxation on tobacco products – New poll reveals 

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72% of Ghanaians support taxation on tobacco products – New poll reveals 

As part of efforts to measure the level of support for tobacco taxation, the Vision for Alternative Development (VALD) has conducted an online opinion poll.Respondents of the poll reacted to two separate questions and the outcomes are clear indications that Ghanaians are in full support of government implementing tax measures on tobacco products.

Out of the 3,807 respondents, 2,741 [72%] support tax measures on tobacco products  while 1,066 (28%) do not support taxes on tobacco products.
Out of the 2066 respondents, 1,695 (82%) indicated that taxes on tobacco will increase government revenue while 371 (18%) responded that taxes on tobacco products will not increase government revenue.

The story is more importantly different in countries with comprehensive tobacco control legislation, which is essential to Ghana because its partial tobacco law leaves openings for the tobacco business to exploit.

In 2013, the Philippines passed the historic Sin Tax law, one of the biggest increases in cigarette taxes ever passed, to improve public health.
Strong political will and popular support were garnered for the law to bring in new tax income for the government to pay for a universal health insurance scheme.
Only the tobacco sin tax brought in $1.6 billion for the nation, 85% of which went toward funding its Universal Health Care Program.
Additionally, it allowed the government to pay for the health insurance premiums of 14.7 million low-income earners in 2014.

Ghana and other African countries are far behind in terms of tobacco taxation with only two countries (Madagascar and Mauritius) complying with the WHO recommended share of excise tax in the retail price of tobacco.A relevant price rise on cigarettes presents a “win-win” policy choice for the government as it will boost income and decrease the use of tobacco products.

Evidence from numerous research demonstrates that effective tax hikes result in a decrease in tobacco smoking prevalence, consumption, initiation, and inequalities.

Most significantly, it gives the government financial room to undertake public health initiatives like programmes for universal health coverage.

As a vital policy tool to support the current tobacco control efforts, it is therefore advised that the government considers significantly raising the cigarette tax.

Ghana can follow President Obama’s bright example by achieving a historic victory for the well-being of American children by raising federal tobacco taxes by $1 and expanding the State Children’s Health Insurance Program.

Some recommendations for the taxation of tobacco products include:
  • Review current Tobacco control laws to comprehensive Smoke-free laws by eliminating the Designated Smoking Areas (DSA)
  • Review the current tax regime from Advalerom to Specific to allow effective price increases on tobacco products to protect, children, youth, young adults, women and the poor.
  • Perform regular adjustments of prices on tobacco products and other sinful products to take care of inflation.
  • Restricted marketing and sales: Banning point-of-sale displays, advertising to minors, and the sponsorship of public events by tobacco companies.
  • Enforcement of smoking bans in public places such as schools, sport event centres, workplaces, hospitals, restaurants, hotels, and parks, as well as in public transportation and cars transporting minors.
  • Enorce the law on the sale to and by minors and the sale of cigarettes.
  • Educate students and families on the negative health consequences of tobacco use as part school curriculum.
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