Excise duty Gov’t raises tax on tobacco products

Ghana’s excise tax, as a percentage of cigarette prices, is considered among the lowest in the West African sub-region.

  • Published:
24/7 Live - Subscribe to the Pulse Newsletter!

Government is optimistic Parliament’s approval for an increase in the excise duty on tobacco products, from 150 percent to 175 percent of the ex-factory price, will further discourage consumption of the products.

Ghana’s excise tax, as a percentage of cigarette prices, is considered among the lowest in the West African sub-region.

Now Parliament has approved the Excise Duty (Amendment) bill, 2015, which sought to amend the 2014 Act and increase the duty on cigarettes and cigars.

The bill will also substitute the ad-valerem rate of duty relating to tobacco products.

The chairman of the Finance Committee of Parliament, James Avedzi, in a report to Parliament indicated that the primary objective is increasing prices of tobacco products to make them costly to buy, in a bid to reduce consumption of tobacco products.

According to industry players, increases in tobacco excise rates are often included as a component of fund-supported stabilisation programmes for countries that need to mobilise additional tax revenue to reduce their fiscal deficit.

Some policy critics have already argued that if taxes on tobacco become too restrictive on industry, it will lead to a growing underground economy for tobacco products that may be counterfeits.

IMANI Ghana, which issued a communique sometime last year ahead of the budget reading, argued that an increment will expose the country to illicit trade in tobacco products as the excise rates in its neighbouring countries such as Togo, Burkina Faso and Cote D’Ivoire are lower.

“It will defeat all our public health campaigns, as one cannot guarantee the contents of illicit tobacco. Tobacco industries play a major role in African economies as far as their tax contributions are concerned, and thus their inputs in these discussions must be encouraged,” the group argued.

Credit: B&FT

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos

Top Articles

1 Bauxite Mining Residents walk from E/R to Flagstaff House to petition...bullet
2 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions public...bullet
3 Illegal Mining 14-year-old among 10 arrested for 'galamsey' at Gomoa...bullet
4 2018 World Happiness Report Somalia is a happier place to live...bullet
5 Salaries In 2018 Here are the dates public workers will be paid...bullet
6 Corruption George Loh accuse MMDCEs, top assembly staff of...bullet
7 Tax Relief? Gov’t secretly replaces 1% tax relief with other...bullet
8 MoMo Ghanaians to make int’l payments with mobile money as...bullet
9 Menzgold Ghana Investment company closes down its Gold...bullet
10 Taxes In Ghana 3% VAT flat rate takes off in July 1bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
3 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
4 Support Finance minister buys Kantanka carbullet
5 New Phone Nokia’s MWC 2018 event in 7 minutesbullet
6 Tech 6 reasons you should buy an iPhone SE instead of any of...bullet
7 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
8 Money Alert Meet Africa's richest womanbullet
9 Bozoma Saint John 10 quotes from Uber top official,...bullet
10 Video We are determined to move Ghana beyond aid - Bawumiabullet