Why government is taxing sugars, sweeteners, others through new Excise Duty

On May 2, 2023, parliament approved the amendment as the object of the Excise Duty (Amendment) Bill, 2022.

The object is to amend the Excise Duty Act, 2014 (Act 878) to replace the list of products that are required to be affixed with an Excise Tax Stamp.

These products include sweetened and unsweetened beverages, electronic cigarettes, and other smoking devices and the additives used in the device.

In a memorandum by the finance minister, he indicated that these measures are aimed at reducing the negative impact of the sugars, sweeteners, flavouring, nicotine, and other chemicals used as additives in the beverages and liquids consumed by patrons of these products.

The utilisation stamps will also assist in curtailing the smuggling and counterfeiting of the products and ensure revenue generation.

Meanwhile, Parliament has approved a total of $710 million in an emergency sitting today. MPs were summoned from the Easter break purposely for the 7 loan agreements some of which have been outstanding since last year.

The facilities are a US$60.6 million as a third additional financing for the Ghana Covid-19 Emergency Preparedness and Response Project, US$150 million to finance the West Africa Food Systems Resilience Programme, and €EU170 million for the establishment of the Development Bank of Ghana.

The rest are a US$30 million facility to finance the Medical Equipment Provision Project in response to Covid-19, US$150 million to finance Primary Healthcare Investment Project, US$150 million to finance Public Financial Management for Service Delivery Programme and US$200 million to finance the Ghana Digital Acceleration Project.

YNA/OGB