Ghana loses GHS 668m in treatment of tobacco-related illnesses every year
Senior Inspector of Taxes at the Ghana Revenue Authority (GRA), Dr. Alex Kombat, speaking at the National Stakeholders Meeting on Tobacco Control held on Thursday, November 16, 2023, revealed the economic burden posed by tobacco-related illnesses and the nation’s ongoing efforts to combat the tobacco epidemic.
Dr. Kombat noted a staggering cost to Ghana, estimating that GHS 668 million is spent annually, equivalent to 0.2% of the country’s GDP, to address the consequences of tobacco-related illnesses.
Addressing the audience, he emphasized the urgent need for measures to curb tobacco consumption, citing the addictive nature of these products as a key driver of their widespread use.
Recognizing the economic and public health implications, the Ghanaian government, in collaboration with the Ghana Revenue Authority (GRA), has implemented tax measures to increase the prices of tobacco products, discouraging large-scale consumption.
These measures, including excise taxes, customs duties, value-added tax (VAT), National Health Insurance Levy (NHIL), and others, have been employed both at entry points into the country and domestically to dissuade tobacco use.
Also noting that, despite persistent interferences from tobacco industry players, the government is committed to revising excise duty rates on tobacco in line with the Economic Community of West African States (ECOWAS) Protocols for the 2023 fiscal year.
Dr. Kombat detailed GRA’s extensive measures to combat illicit tobacco trade, ranging from the use of Excise Tax Stamps to the deployment of technology such as drones and satellite cameras.
The GRA has collaborated with various state agencies, international bodies, and civil society groups, including the Food and Drugs Authority (FDA), the World Health Organization (WHO), and Vision for Alternative Development (VALD) in the fight against tobacco use.
Tobacco taxation, Dr. Kombat stressed further, is a dual objective – discouraging consumption while contributing revenue to national budgets. He revealed that tobacco excise tax revenue has experienced substantial growth, from GHS 66.98 million in 2017 to GHS 176.44 million in 2022, growing at an average rate of 29% annually.
Jemima Odonkor, Head of Tobacco Products at the Food and Drugs Authority (FDA), also addressed the meeting, highlighting the relentless interference of the tobacco industry in Ghana’s progress in tobacco control.
She underscored the need to monitor industry tactics to protect public health policies, citing the WHO’s recognition of this as essential for safeguarding public health.
Ms Odonkor affirmed the FDA’s unwavering commitment to collaborate with all stakeholders, including the WHO, GRA, VALD and other CSOs, to combat the menace of tobacco and its severe consequences.
The National Stakeholders Meeting marks a significant step forward in Ghana’s collective effort to protect the health and financial well-being of the citizenry from the perils of tobacco use.
