Current levels of tax levied on tobacco products in Ghana still mean cigarettes are cheap and easily accessible, even to minors. Tax revenue generated by tobacco sales falls far short of what the government spends on treating tobacco-related diseases.
Source: FCA Bulletin 109, article bu Issah Ali (page 8).
The most popular brand costs GHS1.50 (US$1.16) per pack of 20 cigarettes.
Total tax amounts to 29 per cent of the retail price, made up of 13 per cent total excise (specific) and 16 per cent Value Added Tax.
Following recent newspaper stories,various government officials have spoken out in favour of higher tobacco taxes. On 21 December 2009, was published a front page story headlined "Ghana's cheap cigarettes even children can buy", which exposed the dangers of the affordability and availability ofcigarettes to children.
On 14 January 2010,was published a story by Naa Betty Nelson, the second Vice President of the Media Alliance of Tobacco Control (MATCO). The article called on the government to "slap a100 per cent tax on tobacco, to discourage its consumption and patronage''.
The increased tax could be used to treat tobacco-related diseases,the article suggested.
More recently, the government, in the shape of the Health Minister and the Women and Children's Affairs Minister, has expressed its commitment to adopt tax and price measures to reduce tobacco use and to raise revenue to finance health expenditures.
During the celebration of World No Tobacco Day, on 31 May 2010, Minister of Health Hon Dr Benjamin Kumbour stated in his address, "The Ministry of Health recommends that tobacco products be made less affordable by raising prices through tax measures and applying the revenue raised to specific tobacco control activities benefiting women, young people and the disadvantaged.
"Women and Children's Affairs Minister, Hon Juliana Azumah Mensah, has stated that, “Government will encourage not only legislative and tax interventions to reduce smoking rates alone but also the promotion of public awareness and supporting tobacco control interventions in the country.”
Tax increases will raise the price of cigarettes, and lead to a reduction in tobacco use. Some ex-smokers in Accra have testified to the effect of tax increases in cutting tobacco use.
Vision for Alternative Development, and other civil society groups, have called on Ghana's government to remain committed to comprehensive implementation of FCTC Article 6, and to emulate good practices to increase taxes on tobacco products. As well as financing treatment of tobacco-related diseases, revenues should go to supporting tobacco control programmes nationwide and could also be used to strengthen the National Health Insurance Scheme to support minors,the aged and the poor.
By establishing a working group to develop guidelines for the implementation of Article 6, the COP will provide strong support to developing countries' efforts to reduce tobacco use and meet some of their health expenditures.
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