Civil Society Pushback to Industry Pressure
VAST Ghana, a member organisation of Movendi International, is stepping up for alcohol taxation. Following successful advocacy work for Ghana to raise alcohol taxes in 2023, VAST is now stepping up again to defend the public health achievement.
The alcohol industry is pushing for a reduction of alcohol taxes in Ghana, but VAST is firmly expressing opposition to Big Alcohol. VAST is warning that such a move would undermine public health, jeopardise fiscal stability, and threaten national development. This position comes in response to the “Drunkards Association of Ghana”, which urged the government to cut taxes on alcoholic products, citing industry contributions to the economy and currency appreciation.
In a statement released on July 1, 2025, VAST Ghana emphasised that reducing alcohol taxes would derail hard-won gains in the effort to prevent and reduce noncommunicable diseases (NCDs), which account for 45% of all deaths in Ghana, according to the World Health Organisation.
Alcohol use is a major contributor to this burden, linked to over 200 health conditions including cancers, cardiovascular and liver diseases, and road traffic injuries.
Mental health is also at risk. According to Zed Multimedia, in 2023 alone, Ghana’s Mental Health Authority recorded 3,765 cases of mental disorders directly linked to alcohol use and an additional 5,554 cases related to other psychoactive substances.
Alcohol Use Patterns Highlight the Urgency for Prevention
The 2023 Ghana STEPS Survey revealed alarming patterns of alcohol use, reports Zed Multimedia:
- About 22.6% of adults are current alcohol users.
- Around 9.4% report heavy episodic alcohol use, and
- 6.2% of adolescents report heavy episodic alcohol use.
The national alcohol use disorder prevalence is 4.1%, surpassing the African regional average of 3.7%.
Alcohol is not only psychoactive and dependence-producing; it is also classified as a Group 1 carcinogen, placing it in the same category of risk as tobacco, asbestos, and radiation. VAST Ghana emphasised that raising taxes on such a harmful product is important because it protects people, promotes health, boost government revenue, and allows financing of health and social programs that benefit the most vulnerable.
Effective Law Under Attack
At the heart of the issue is the Excise Duty (Amendment) (No. 2) Act, 2023 (Act 1108). The law currently imposes excise tax rates up to 47.5% on beer and between 25% and 47.5% on wines and spirits. VAST Ghana has defended the law as an essential tool to reduce affordability and accessibility of alcohol, especially among youth.
Global evidence supports their case. For instance, a Lancet study based in Scotland and Wales shows that an increase in alcohol prices leads to a significant reduction in consumption, 7.7% and 8.6 % respectively. This confirms that price-based interventions work and should be further elevated.
The Economic Rationale for Stronger Alcohol Taxation
Claims by the “Ghana Drunkards Association” that the alcohol industry contributed US$ 125 million to Ghana’s GDP were dismissed by VAST Ghana as unsubstantiated. In contrast, the cost of NCDs, including productivity losses and rising healthcare spending due to alcohol, amounted to a staggering 10.4% of GDP annually.
Arguments citing the recent 24.1% appreciation of the cedi are also misplaced. As VAST Ghana noted, currency shifts are irrelevant to health-focused taxation. The goal of alcohol taxes is to reduce use, not to promote affordability.
For example, already in 2021 the International Monetary Fund (IMF) called on the Ghanaian government to increase the alcohol tax to boost sustainable development. Domestic resource mobilization, such as through tobacco and alcohol taxes, was an important component for middle- and low-income countries to achieve development for all, the IMF showed in a report. At the time the IMF illustrated that tax reforms for alcohol and tobacco could generate 0.45% of GDP and help promote health and productivity in the population.
A Call to Strengthen, Not Weaken, Alcohol Tax Policy
VAST Ghana is now urging Parliament and the Ministry of Finance to not only reject calls to weaken Act 1108 but to go further by transitioning from an ad valorem structure to a hybrid system that includes specific excise taxes. This shift would ensure predictable revenue and safeguard health outcomes.
They also praised the Ghana Revenue Authority’s advocacy for indexation, which adjusts excise taxes in line with inflation. Kenya’s use of this mechanism and Ghana’s own sugar-sweetened beverage (SSB) tax, which generated over GHS 1.3 billion and reduced consumption, serve as working models.
This is not the time to bow to industry pressure,” said Labram Musah, Executive Director of VAST Ghana who is also a board member of Movendi International, according to Zed Multimedia reporting.
Alcohol policy must protect lives, support health systems, and secure a prosperous future for all.”
Their message is clear. Protecting people from alcohol harm is not only a health imperative but an economic necessity. Movendi members across the region continue to lead the way, championing ambitious, evidence-based alcohol policy solutions that benefit society at large.