Health advocacy groups have criticized the Food and Beverages Association of Ghana (FABAG) for its push to reverse the excise tax on sugar-sweetened beverages (SSBs).
They warn that such a move would jeopardize public health and worsen Ghana’s growing non-communicable disease (NCD) crisis.
In a joint statement released on March 4, Vision for Accelerated Sustainable Development, Ghana (VAST Ghana), the Ghana NCD Alliance, and other civil society organizations called on the government to stand firm and even consider increasing the tax, which was introduced under the Excise Duty (Amendments) Act 2023 (Act 1108).
The tax aims to reduce the consumption of sugary drinks, a major contributor to diabetes, obesity, and cardiovascular diseases.
FABAG’s claims misleading; tax is working
FABAG has argued that the excise tax is harming local businesses, but health advocates have dismissed these claims as misleading.
Data from the Ghana Revenue Authority (GRA) shows that revenue from the SSB tax surged from GH¢735.46 million in 2022 to GH¢1,325.57 million in 2023, proving the tax’s effectiveness in generating funds for the national coffers.
“FABAG’s narrative that the excise tax is crippling businesses is simply not true. The tax has not only boosted revenue but is also helping to reduce the consumption of unhealthy beverages. Global evidence shows that such taxes do not lead to job losses but instead save lives by curbing NCDs,” said Labram M. Musah, Executive Director of VAST Ghana.
Ghana’s NCD crisis demands action
Ghana is grappling with a severe NCD crisis, with these diseases now responsible for 43% of all deaths, according to the World Health Organization (WHO).
Health advocates argue that scrapping the tax would be a step backward in the fight against NCDs, which are largely driven by unhealthy diets and lifestyles.
“The government must prioritize the health of Ghanaians over the profits of a few businesses. Reversing this tax would undermine Ghana’s commitment to tackling NCDs, as highlighted in the President’s recent State of the Nation Address,” Musah who is also Convener for Ghana Tax Advocacy Network for Health Promotion and the National Coordinator for Ghana NCD Alliance emphasized.
Global success stories show the way
Advocates pointed to international examples where similar taxes have successfully reduced sugar consumption and improved public health. In Mexico, a 10% tax on sugary drinks led to a 37% drop in SSB purchases between 2012 and 2016, particularly among low-income groups. Similarly, South Africa’s sugar tax, introduced in 2018, resulted in a 51% reduction in sugar intake from taxed beverages.
Musah said, “These examples prove that taxing sugary drinks works. Ghana must not bow to industry pressure but instead strengthen its public health policies.”
Call to increase, not scrap the tax
The health groups have urged the Ministry of Finance to reject FABAG’s demands and consider raising the excise tax to further discourage the consumption of sugary drinks.
“Raising the excise tax is a proven strategy to protect public health. Ghana cannot afford to backtrack on this critical policy. The health of our citizens must come first,” Musah stated.
He argues that higher taxes would not only generate more revenue but also encourage healthier choices and reduce the long-term burden on the healthcare system.
He called on the government to resist industry lobbying and uphold policies that safeguard the well-being of Ghanaians.
By Osumanu Al-Hassan/thenewsbulletin24.com