Conflicting Laws on E-cigarette Taxation in Ghana: Call for Discussion

Regulations by 2FIRSTS.ai
May.27.2024
Conflicting Laws on E-cigarette Taxation in Ghana: Call for Discussion
GRA Assistant Commissioner Alex Moyem Kombat urges stakeholders to review conflicting laws on e-cigarette taxation in Ghana.

According to a recent report by GBC Ghana Online, Assistant Commissioner Alex Moyem Kombat of the Ghana Revenue Authority (GRA) is calling for stakeholders to engage in discussions to review two conflicting laws regarding the tax policy on e-cigarettes. These two laws are sections 61(2) and 62(1) of the Part VI of Act 851 of the Public Health Law and Acts 1093/1108 (First Schedule).

 

Cobett stated that meetings with stakeholders such as the Food and Drug Authority (FDA) and Vision for Alternative Development in Ghana (VALD-Ghana) will help to reform laws in order to protect public health. This was discussed at a stakeholder meeting on novel and emerging tobacco and nicotine products held in Ghana, where Cobett presented a report titled "Taxation of e-cigarettes - GRA's perspective".

 

Kobayashi emphasized that taxing e-cigarettes is in accordance with Chapter 4, Article 8 of the Economic Community of West African States (ECOWAS) regulations. He pointed out that "Chapter 4, Article 8 requires member states to levy at least a 50% ad valorem tax on e-cigarettes and other tobacco products, as well as a specific tax of $0.02 per cigarette and $20 per kilogram of net weight of tobacco.

 

Ghana has signed an agreement paving the way for the implementation of a hybrid system and the imposition of consumption taxes on e-cigarettes and e-liquid.

 

Furthermore, Kobert believes that the government has a responsibility to protect citizens from the harm of tobacco and other harmful products, therefore, a comprehensive revision of Schedule 1 of the 2014 Consumption Tax Law (Bill 878) is needed.

 

The implementation of this law will impact tax revenue, while also expecting to bring about some changes in society for the greater good, creating a win-win situation for all.

 

He called on stakeholders to strengthen cooperation with state-owned institutions and international organizations to combat illegal tobacco products and e-cigarette trade, and to use technology more extensively in the fight against illegal tobacco and e-cigarette trade.

 

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