Ghana to peg tobacco tax to dollar to address inflation

VALD-Ghana has urged the Ministry of Finance and the Ghana Revenue Authority to peg the Excise Specific Tax on tobacco to the dollar to combat the impacts of currency depreciation and inflation on tax effectiveness.

Mr. Labram Musah highlighted that recent economic shifts have made tobacco products more affordable than intended, diminishing tax deterrence.

Meanwhile, Dr. Alex Kombat reported that the Excise Duty Amendment Act has improved revenue generation and reduced tobacco use, generating over GHS 252 million since its implementation.

The FDA supports the Act’s enforcement as part of broader tobacco control efforts in Ghana.