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Government Faces Mounting Pressure to Impose Excise Tax on Ultra-Processed Foods Amid Rising Health Costs

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Government Faces Mounting Pressure to Impose Excise Tax on Ultra-Processed Foods Amid Rising Health Costs

A leading public health organisation has called on the Government to enact a comprehensive excise tax on ultra-processed foods (UPFs), warning that failure to act could undermine both the country’s public health and economic resilience.

Vision for Accelerated Sustainable Development (VAST Ghana), a health policy advocacy group, issued a statement urging policymakers to adopt stronger fiscal measures to combat the growing burden of diet-related non-communicable diseases (NCDs), which now account for 45% of all deaths in Ghana and are projected to become the leading cause of mortality by 2030.

“Ultra-processed foods are fuelling a public health emergency in Ghana,” said Labram Musah, Executive Director of VAST Ghana. “We urgently need excise taxes and front-of-pack warning labels to reduce consumption and incentivise healthier diets.”

UPFs, including sweetened beverages, instant noodles, packaged snacks, and processed meats, are defined by the World Health Organization as industrially formulated products with high levels of salt, sugar, saturated fats, and artificial additives.

According to the 2023 Ghana STEPS Survey, 13.4% of adults are obese and an additional 20.9% are overweight, with a high prevalence of hypertension and rising cases of type 2 diabetes.

VAST Ghana argues that targeted taxation would not only help reduce consumption of health-damaging foods but also raise critical revenue.

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The group cited Ghana’s 2023 introduction of a 20% excise tax on sugar-sweetened beverages as a successful precedent, noting early signs of reduced purchases among vulnerable groups.

The proposed policy would involve a tiered tax structure, with higher levies applied to foods containing excessive levels of added sugars, sodium, and unhealthy fats.

Revenues would be channelled toward public health initiatives, including the Ghana School Feeding Programme and the National Health Insurance Scheme.

Critics of such taxes, particularly industry players, argue they are regressive and harmful to small businesses.

But Mr Musah contends the opposite, saying, “Most ultra-processed foods are produced by multinational firms. A well-designed tax can exempt culturally significant, minimally processed foods and support small-scale producers.”

The group also warned of the broader economic implications. While Ghana lacks precise estimates, studies in similar economies suggest that diet-related NCDs may cost between 5% and 10% of GDP annually through healthcare expenses and lost productivity.

According to the World Health Organization, NCDs already impose an estimated annual cost of $351 million on Ghana’s healthcare system.

Internationally, momentum for such policies is growing. More than 50 countries have implemented health-based food taxes, including Colombia, which in 2023 became the first nation to introduce a comprehensive excise tax on UPFs.

VAST Ghana called for Ghana to expand its regulatory toolkit by imposing heavy advertising restrictions on UPFs, particularly those targeting children, and to adopt taxation as a tool not just for revenue generation but for structural reform.

“Excise taxes on ultra-processed foods are not punitive, they are a necessary correction to market failure,” said Mr Musah. “The evidence is clear. Ghana must act decisively to protect its health and economic future.”

Tags: Excise taxGovernment Faces Mounting Pressure to Impose Excise Tax on Ultra-Processed Foods Amid Rising Health CostsNCDsUltra-Processed FoodsVAST Ghana

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