VAST Ghana rejects alcohol tax cut

Public health group raises alarm over call for alcohol tax reduction

The Vision for Accelerated Sustainable Development Ghana (VAST Ghana), a leading public health civil society organization, has sharply rebuffed recent calls by the so-called “Drinkers Association of Ghana” to reduce taxes on alcoholic beverages. The association, in a June 13th article published by mybrytfmonline.com, argued that tax cutswere justified by the alcoholic beverage industry’s contribution to Ghana’s GDP and the recent appreciation of the cedi.

But VAST Ghana has issued a rejoinder warning that succumbing to such demands would be a “grave mistake” for the country’s public health and economic stability.

Alcohol consumption: A national health crisis

In their statement released July 1st, VAST Ghana emphasized that alcohol is a major contributor to Ghana’s growing epidemic of non-communicable diseases (NCDs), which are now responsible for 45% of all deaths in the country (WHO, 2024). Alcohol consumption is directly linked to over 200 health conditions, including cancers, liver and heart diseases, and road traffic injuries.

“Alcohol is not just another commodity,” said Labram M. Musah, Executive Director of VAST Ghana. “It is a toxic, dependence-producing substance and a known Group 1 carcinogen—on par with tobacco, radiation, and asbestos.”

The economic myth: Alcohol’s GDP contribution vs. Public health cost

VAST Ghana also disputed the economic argument presented by the Drinkers Association. According to Boachie et al. (2022), Ghana loses an estimated 10.4% of its GDP annually due to NCDs—far exceeding the alleged $125 million GDP contribution by the alcohol industry.

“The claim is not only unsubstantiated but grossly misleading,” Musah stated. “Economic benefits touted by the industry pale in comparison to the productivity losses and rising healthcare costs resulting from alcohol-related illnesses.”

Mental health toll from alcohol on the rise

The public health organization also pointed to alarming data from the Mental Health Authority of Ghana, which reported 3,765 cases of alcohol-related mental health disorders in 2023 alone. Combined with 5,554 cases tied to other psychoactive substances, this paints a worrying picture of rising substance abuse among Ghanaians—especially the youth.

The 2023 Ghana STEPS Survey further revealed that 22.6% of adults are current drinkers, 9.4% engage in heavy episodic drinking, and 6.2% of adolescents are involved in binge drinking.

Higher taxes save lives, reduce harm

Global research cited by VAST Ghana shows that a 10% price increase on alcohol leads to a 5–8% reduction in consumption in low- and middle-income countries. Ghana’s Excise Duty (Amendment) (No. 2) Act, 2023—introducing up to 47.5% taxes on alcoholic products—has been hailed as a milestone in protecting public health.

“Taxes are not punishment; they are preventive medicine,” Musah explained. “Higher prices discourage consumption, especially among the youth who are aggressively targeted by alcohol marketing.”

Contrary to industry fears, enforcement of Act 1108 since January 2024 has not resulted in job losses or increased illicit trade, according to official monitoring.

Policy recommendations: Toward a smarter tax system

VAST Ghana is calling on the Ministry of Finance to strengthen, not weaken, existing alcohol tax structures. The organization recommends transitioning from a purely ad valorem system to a hybrid excise tax model, incorporating a fixed specific tax component.

This approach, the group argues, would protect public health, shield revenues from inflation and currency volatility, and create a predictable fiscal base for health spending—similar to Ghana’s success with the Sugar-Sweetened Beverage (SSB) tax, which raised GHS 1.32 billion in 2023.

The global picture: Learning from WHO and beyond

Internationally, the World Health Organization (WHO) continues to advocate strong policy interventions to combat alcohol harm. In the WHO European Region, which has the world’s highest alcohol consumption rates, over 200 million people are at risk of alcohol-attributable cancers.

“We need cancer-related health information on alcohol labels, just like tobacco products,” said Dr. Carina Ferreira-Borges of WHO Europe. “There is no safe level of alcohol consumption. The science is unequivocal.”

A crossroads for Ghana: Health or profit?

Ghana now stands at a critical decision point. Will policymakers prioritize the long-term health and wellbeing of citizens, or bow to pressure from industry groups promoting short-term economic interests?

VAST Ghana’s message is clear: “Public health must come first.”

The group is urging the government, especially the Ministry of Finance, to resist pressure from the alcohol industry and instead deepen its commitment to fiscal policies that protect life, promote equity, and reduce the burden of disease.

As Musah concluded, “No level of alcohol consumption is safe. Let’s ensure our policies reflect that truth.”

Contact:
Labram M. Musah
Executive Director, VAST Ghana
Phone: 0243211854
Email: labrammusah@gmail.com