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VAST Ghana Calls for Daring Taxes on ‘Poisonous Merchandise’ to Curb Lifestyle Diseases

Introduction

In a decisive move to address the rising tide of non-communicable diseases (NCDs) in West Africa, Vision for Accelerated Sustainable Development (VAST-Ghana) has issued a critical ultimatum to the Government of Ghana. The advocacy group is calling for immediate, aggressive tax reforms targeting products deemed “poisonous” to public health. This appeal follows the release of alarming data from the World Health Organization (WHO) in early 2026, which highlights the increasing affordability and accessibility of health-harming goods. This article analyzes VAST Ghana’s proposal, exploring the economic and health implications of taxing tobacco, alcohol, and sugar-sweetened beverages (SSBs).

Key Points

Background

The landscape of public health in Ghana is shifting. While infectious diseases remain a concern, lifestyle diseases—such as diabetes, heart disease, and cancer—are surging, driven by changing consumption patterns. On January 21, 2026, the WHO released three landmark studies that painted a distressing picture of global health. The data indicated that despite the known fatal toll of products like alcohol and sugar-sweetened beverages, they are becoming more affordable and obtainable than ever before.

Responding to this data, VAST Ghana issued a strongly worded press statement on January 25, 2026. The organization, led by Executive Director Labram Musah (a recipient of the WHO World No Tobacco Award), argues that the current fiscal policies in Ghana are outdated. The existing tax regimes are described as “moderately low and poorly designed,” allowing industries to prioritize profit maximization while the Ghanaian population bears the brunt of long-term clinical and financial consequences.

Analysis

The Failure of Current Tax Regimes

Current excise duty structures in Ghana, including the Excise Duty (Amendment) Act of 2023, have introduced taxes on sugar-sweetened beverages. However, VAST Ghana argues that these measures are insufficient. The primary critique is that without specific, inflation-indexed taxes, manufacturers can easily manipulate prices or absorb costs to keep products affordable. When products remain cheap, consumption rises, leading to a heavier burden on the national healthcare system.

The Economic Argument for Health Taxes

VAST Ghana’s proposal is rooted in economic logic rather than moral posturing. Dr. Tedros Adhanom Ghebreyesus, WHO Director-General, is quoted in the advocacy group’s statement: “Health taxes are one of the strongest tools we have to protect people from products that cause cancer, heart disease, and diabetes.”

The organization highlights the concept of “price elasticity”—the economic principle that as prices increase, consumption decreases. By making harmful products more expensive through excise taxes, the government can simultaneously discourage consumption and generate revenue. VAST Ghana cites compelling data:

• Tobacco Control: Every $1 invested yields a $7 return.
• Alcohol Control: Every $1 invested yields a $9 return.
• Unhealthy Diet Control: Every $1 invested yields up to a $14 return.

This data suggests that tax reform is not just a revenue generator but a preventative investment strategy.

Legal and Regulatory Implications

The call for reform intersects with existing legislation. The 2023 Amendment to the Excise Duty Act introduced a 20% tax on SSBs. However, VAST Ghana contends that enforcement must be “daring” to withstand industry lobbying and digital tools that facilitate price manipulation. The proposal suggests a shift from ad valorem taxes (based on value) to specific taxes (based on quantity), which is a legally complex but necessary transition to prevent industry circumvention.

Practical Advice

To translate these proposals into actionable policy, VAST Ghana has outlined a roadmap for the Ministry of Finance and the Ministry of Health. Here is a breakdown of the recommended reforms and how they function:

1. Implement Specific Tax Systems

The Strategy: Instead of taxing products based on a percentage of their price (ad valorem), the government should tax them based on physical units or content.

Why it works: Ad valorem taxes allow manufacturers to lower the price of a product to maintain sales volume while still paying the same percentage. Specific taxes (e.g., a fixed amount per stick of tobacco or per liter of alcohol) ensure that the price floor remains high, regardless of brand positioning or marketing strategies.

2. Index Taxes to Inflation

The Strategy: Tax rates must be automatically adjusted annually based on inflation and income growth.

Why it works: If taxes remain static while inflation rises, products effectively become cheaper over time. Indexing ensures that the “real price” of harmful goods remains high, maintaining the deterrent effect on consumers.

3. Earmark Revenue for Health

The Strategy: Legally mandate that a specific percentage of revenue generated from these excise taxes be ring-fenced for the National Health Insurance Scheme (NHIS) and NCD prevention programs.

Why it works: This builds public trust and ensures that the revenue is not lost in general government spending. It creates a sustainable funding loop where the products causing disease help pay for their treatment.

4. Expand the Scope of SSB Taxes

The Strategy: Move beyond taxing only sugar-sweetened beverages to include ultra-processed foods.

Why it works: Obesity and diabetes are driven by a wide range of processed foods, not just sugary drinks. Expanding the tax base addresses the broader obesogenic environment.

FAQ

Conclusion

VAST Ghana’s call for daring tax reforms represents a pivotal moment for public health policy in Ghana. By leveraging economic tools to influence consumer behavior, the organization aims to curb the rising prevalence of lifestyle diseases while securing funding for the National Health Insurance Scheme. The evidence cited from WHO studies and economic ROI data provides a strong foundation for these demands. As the 2026 fiscal year approaches, the response from the Ministry of Finance will be critical in determining whether Ghana can pivot toward a healthier, more sustainable future.