From naming ceremonies to wedding receptions, and even solemn funerals, beverages — both alcoholic and non-alcoholic beverages— have become synonymous with social gatherings in Ghana and beyond.
Then, there are some people who do not wait for special occasions to indulge in alcohol, sugar-sweetened beverages and tobacco products, and thus they consume these products whenever they want, regardless of the day or time.
Although these beverages are enjoyable, the World Health Organisation (WHO) and its partners say there is a bitter side, as they account for more than 17,000 deaths annually in the country.
These deaths, according to them, could be averted and non-communicable disease (NCDs) burden reduced, if the government increased health taxes on these products.
The call is based on their study which revealed that implementing specific excise taxes on these products would not only reduce diseases and deaths but also generate an additional GH¢3.5 billion in revenue by the end of 2023.
While the intentions behind health taxes are commendable, the Ghanaian Times thinks there is also a bitter side to the solution which should be carefully considered in order not to sway from the intended purpose.
Health tax is not a novelty. The Ghanaian Times is not against health taxes. We are fully aware that these taxes are imposed on unhealthy products, to reduce consumption and save lives while raising much-needed revenue for health spending by the government.
We recall that some years ago, Ghana imposed taxes on tobacco products to among other reasons, reduce its consumption. In April this year, Parliament approved three major tax bills and one of them was the Excise Duty (Amendment) Bill.
Now a law , it imposed a 20 per cent tax on cigarettes and e-smoking devices, as well as sweetened beverages, spirits and wines, is projected to rake in about GH¢400 million annually.
However, the call for increased taxes, coming on the back of the economic blow on businesses, will disproportionately impact small and medium-sized businesses within the alcohol, sugar-sweetened beverages, and tobacco industries.
By burdening these already struggling entities with higher taxes, we risk crippling local economies, resulting in loss of jobs and potential business closures.
While the implementation of health taxes aims to reduce the consumption of unhealthy products, it is essential to recognise that taxes, in isolation, do not effectively discourage people from leading unhealthy lifestyles.
Mere financial constraints often fail to address the root causes of harmful behaviours, such as lack of education, cultural norms, and limited access to healthier alternatives.
For instance, despite the taxes on tobacco, the Food and Drugs Authority estimate that more than 6,700 Ghanaians die every year due to tobacco-related illnesses.
This supports the Ghanaian Times’ argument that a comprehensive approach to combating NCDs requires the integration of social and behaviour change interventions.
By educating and empowering individuals, we can facilitate sustainable and lasting changes in lifestyle choices. Moreover, these initiatives will tackle the underlying causes of unhealthy behaviour, promoting systemic changes rather than quick-fix solutions.
Rather than burdening the consumers with higher taxes, the government should explore alternative avenues for generating revenue to fund health spending.
