Health advocacy groups have opposed recent calls from the Food and Beverages Association of Ghana (FABAG) to reverse the excise tax on sugar-sweetened beverages (SSBs).
In a statement released on March 4, 2025, the Vision for Accelerated Sustainable Development, Ghana (VAST Ghana), along with the Ghana NCD Alliance and other civil society organizations, urged the government to maintain and even increase the tax to protect public health.
The excise tax, introduced under the Excise Duty (Amendments) Act 2023 (Act 1108), was designed to curb the consumption of sugary drinks, a major contributor to non-communicable diseases (NCDs) such as diabetes, obesity, and cardiovascular illnesses.
Despite FABAG’s claims that the tax has hurt local businesses, health advocates argue that the measure is yielding positive results, both in revenue generation and health improvements.
According to the Ghana Revenue Authority (GRA), excise tax revenue from SSBs has grown significantly, jumping from GH¢735.46 million in 2022 to GH¢1,325.57 million in 2023 after the new tax was introduced.
This data challenges FABAG’s assertion that the tax is crippling industry sales.
“FABAG’s claim that the excise tax is harming businesses is misleading. Revenue from the tax has increased substantially, and global evidence shows that such taxes do not lead to job losses,” said Labram M. Musah, Executive Director of VAST Ghana. “
Musah emphasized that similar policies worldwide have successfully reduced the prevalence of NCDs.
For instance, Mexico’s 10% tax on sugary drinks led to a 37% drop in SSB purchases between 2012 and 2016, particularly among low-income groups at higher risk for NCDs.
In South Africa, a similar tax introduced in 2018 resulted in a 51% reduction in sugar consumption from taxed beverages.
Ghana faces an alarming NCD crisis, with these diseases now accounting for 43% of all deaths, according to the World Health Organization (WHO).
Advocates insist that maintaining the excise tax aligns with international health recommendations, including those from the WHO, World Bank, and ECOWAS Directive on Excise Duties.
“The government must prioritize public health over private profits. Scrapping the excise tax would undermine Ghana’s commitment to fighting NCDs, as outlined in the President’s recent State of the Nation Address,” ” Musah stated.
The advocacy groups have called on the Ministry of Finance to reject FABAG’s demands and instead consider raising the tax further to strengthen its public health impact.
The excise tax on SSBs is one of many fiscal policies aimed at reducing the burden of NCDs in Ghana.
The statement argued that beyond revenue generation, taxation is an effective tool for influencing consumer behavior and lowering healthcare costs in the long term.
“Raising the excise tax is a proven strategy to encourage healthier choices and reduce the strain on our healthcare system. Ghana must remain committed to policies that protect its citizens from preventable diseases,” said Musah, who is also the Convener for Ghana Tax Advocacy Network for Health Promotion and the National Coordinator the Ghana NCD Alliance
Health advocates are rallying support for policies that promote sustainable public health improvements over short-term economic concerns.
