Vision for Accelerated Sustainable Development Ghana (VAST Ghana) has proposed increasing Ghana’s specific excise tax on cigarettes from GH¢0.28 to GH¢1.00 per stick as part of a broader package of fiscal reforms aimed at improving public health and boosting domestic revenue.

The recommendation was presented to the Ministry of Finance during a stakeholder engagement on the draft Strategic Framework and Proposed Overarching Legislation for Non-Tax Revenue Mobilisation and Management.

According to VAST Ghana, raising the excise tax to GH¢1.00 per cigarette—equivalent to GH¢20 per pack—would help ensure that total taxes account for at least 75% of the retail price, in line with international best practices.

The organisation said stronger tobacco taxation would reduce tobacco consumption, lower the burden of non-communicable diseases (NCDs), and generate additional government revenue.

VAST Ghana noted that Ghana’s current hybrid tobacco tax system has already demonstrated positive results, with the introduction of a specific excise duty of GH¢0.28 per stick contributing to a more than 300% increase in tobacco excise revenue, generating over GH¢700 million.

Beyond tobacco taxation, the organisation also proposed reforms to alcohol and sugar-sweetened beverage taxes, annual inflation-based tax adjustments, digitalisation of Ghana’s excise tax stamp system, and the allocation of a portion of excise tax revenue to finance NCD prevention and other public health programmes.