In Ghana, more than 5,000 people are killed by tobacco-caused diseases every year (Tobacco Atlas, 2018). Currently, the country’s tax administration approach is unitary with a uniform ad valorem tax structure on all excisable products including tobacco. However, the ECOWAS directive on tobacco control in line with the WHO Framework Convention on Tobacco Control (WHO FCTC), recommends a simple tax structure using a mixed excise system with a minimum specific tax floor, to overcome the large limitations of the ad valorem system on tobacco products especially cigarettes. The study therefore simulates mixed tax policy interventions and assesses its effect on government revenue and public health relative to the current ad valorem tax system. The study provided evidence-based analysis of tobacco taxation in Ghana. The main research theme addressed best practices in tobacco taxation centering on the impact of tobacco tax increases on the retail price of tobacco products, tobacco consumption and government tax revenue.
Expected Duration: 2 years (2019 – 2020)
Principal Investigator: Dr. Ama Pokuaa Fenny