By: Miriam A.A Kwateng.
Pupil, Zoe, Akyea & Co.
Introduction
Introduction The Excise Duty (Amendment) Act, 2023 was passed to amend the Excise Duty Act, 2014 (Act 878).
It was assented to on 3rd April 2023. The key objective of the amendment is to revise and expand the list of goods subject to excise duty and to increase
existing rates on certain products.
Specifically, the amendment:
- Increases excise duties on cigarettes and tobacco products, wine, malt drinks, and spirits; and
- Introduces new excise duties on sweetened beverages, fruit juices, electronic cigarettes, and electronic smoking devices.
Background and Rationale
The primary policy objective behind the amendment is to promote healthy living in Ghana by discouraging the excessive consumption of unhealthy
products. According to Mr. Labram Musah, the National Coordinator for the Ghana Non-communicable Disease Alliance (GhNCDA), studies by the Global
Obesity Observatory (2023) reveal alarming trends:
- Approximately 4.5 out of every 11 Ghanaian children are classified as obese.
- About 7 in 10 Ghanaian adults are also considered medically obese.
The government identified the increased consumption of processed foods, sugary beverages, and tobacco products as a leading contributor to these
trends. By imposing or increasing excise duties on such goods, the State aims to:
- Reduce demand and overconsumption through higher prices,
- Promote healthier lifestyle choices, and
- Generate additional public revenue.
Overview of the Amended Excise Duties
The Amendment substitutes a new First Schedule to Act 878, detailing the revised duty structure across various goods. Below is a breakdown of the
relevant tariffs and duty rates:
Note: “Ex-factory price” refers to the price of goods at the point of manufacture, excluding taxes and transportation costs. “CIF value” refers to
the Cost, Insurance, and Freight value at the point of entry for imported goods.
Conclusion
The Excise Duty (Amendment) Act, 2023 represents a significant fiscal and public health intervention. By adjusting duty rates and expanding the scope
of taxable goods, the government seeks to:
- Encourage manufacturers to use more local raw materials through differentiated duty rates,
- Combat rising rates of non-communicable diseases, and
- Increase revenue mobilization for national development.
Manufacturers, importers, and distributors must carefully review the new excise schedule to ensure full compliance. Regulatory enforcement is
expected to be robust, with penalties applicable for non-compliance under the Excise Duty Act.
To further discuss this blog post or related matters, visit our office at C114 Aborlebu Crescent, North – Labone, Accra or contact us on 030 273 6742 or info@zakyea.com and a member of the Zoe, Akyea & Co. legal team will be happy to provide further insight.