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              ECOWAS shares dialogue, negotiation and mediation capacity building experiences at The Hague

              Regional Experts meet to review the operationalization of ECOWAS Informal Trade Regularization Support Program (PARCI/ITRSP)

              President Samia Congratulates and set Tanzania- UK Ties  for Greater Heights

              UK-Asia trade deal to boost UK economy by 0.08%

              Kenya: Ministry of Environment, Climate Change and Forestry joins Kenya Meteorological Dept. to launch Automatic Weather Station at Nkorika

              Kenya: Ministry of Environment, Climate Change and Forestry joins Kenya Meteorological Dept. to launch Automatic Weather Station at Nkorika

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              Egypt: Arish Seaport closed due to bad weather

              SA: Department of Employment and Labour holds Structured Advocacy sessions in markets

              SA: Department of Employment and Labour holds Structured Advocacy sessions in markets

              Electricity Company of Ghana disconnects power supply to Hillburi Hotel over the illegal connectio

              Electricity Company of Ghana disconnects power supply to Hillburi Hotel over the illegal connectio

              Parliament of Ghana

              Ghana: Parliament approves three new taxes; expected to rake in 3.96 billion cedis

              Trending Tags

              • FEATURES
                Tanzania confirms first-ever outbreak of Marburg Virus Disease

                Marburg Virus Disease – United Republic of Tanzania

                Fight Slavery’s ‘Legacy of Racism’ through Education: Guterres 

                Fight Slavery’s ‘Legacy of Racism’ through Education: Guterres 

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                International Day of Forests, 21 March

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                Cybersecurity in Africa: Many still believe cybercrime ‘won’t affect them’ 

                Cybersecurity in Africa: Many still believe cybercrime ‘won’t affect them’ 

                Samia redefining women roles in Tanzania

                Samia redefining women roles in Tanzania

                Meet Martha Koome: Kenya’s Chief Justice Harnessing Tech to End Gender-Based Violence

                Meet Martha Koome: Kenya’s Chief Justice Harnessing Tech to End Gender-Based Violence

                Trending Tags

                • DIGITAL ECONOMY
                  ECOWAS shares dialogue, negotiation and mediation capacity building experiences at The Hague

                  ECOWAS shares dialogue, negotiation and mediation capacity building experiences at The Hague

                  Kenya: Ministry of Health welcomes new Kenya Medical Supplies Authority Chairperson, Mr. Daniel Rono

                  Kenya: Ministry of Health welcomes new Kenya Medical Supplies Authority Chairperson, Mr. Daniel Rono

                  Full SONA Delivered by President Akufo-Addo to Parliament

                  Full SONA Delivered by President Akufo-Addo to Parliament

                  image containing somalia frontline states summit

                  We must ruthlessly dismantle terror networks in the horn of Africa- President Ruto

                  President Ramaphosa nominates Justice Mahube Betty Molemela as Judge President post image

                  President Ramaphosa nominates Justice Mahube Betty Molemela as Judge President

                  South Africa: Minerals and Energy on Eskom Diesel Licence

                  South Africa: Minerals and Energy on Eskom Diesel Licence

                  Statement by Administrator Samantha Power on the declaration of the end of the Ebola Outbreak in Uganda

                  Statement by Administrator Samantha Power on the declaration of the end of the Ebola Outbreak in Uganda

                  flier for Invest in Africa Energy invitation

                  Invest in African Energy: African Energy Chamber to Host New Year Reception

                  President Wavel attends the official launching of Liam’s Rainbow Foundation

                  Seychelles: President Wavel attends the official launching of Liam’s Rainbow Foundation

                  Trending Tags

                  • INTERVIEW
                    Sierra Leone Seeks Upstream Partners to Fast-Track Exploration, says Petroleum Directorate

                    Sierra Leone Seeks Upstream Partners to Fast-Track Exploration, says Petroleum Directorate

                    Ghana’s registra department: driving digitization for effecient services

                    Ghana’s registrar department: driving digitization for efficient services

                    Nigerian’s First Lady Aisha Buhari in Talks on Plans After Husband’s Presidency

                    Nigerian’s First Lady Aisha Buhari in Talks on Plans After Husband’s Presidency

                    Cedi expected to end 2020 with less than 5% depreciation to dollar Says Expert

                    Cedi expected to end 2020 with less than 5% depreciation to dollar Says Expert

                    “Citizen Gate is Designed to bring the government closer to the people”- Mr. Toba Otusanya, DG, Lagos State Office of Transformation, Creativity & Innovation

                    “Citizen Gate is Designed to bring the government closer to the people”- Mr. Toba Otusanya, DG, Lagos State Office of Transformation, Creativity & Innovation

                    I cherish and treasure my reputation for probity and accountability,– Dr. Babatunde Ajibade, SAN

                    I cherish and treasure my reputation for probity and accountability,– Dr. Babatunde Ajibade, SAN

                    Why Nigeria Needs Aircraft Leasing Companies- Captain Abdulsalami Mohammed

                    Why Nigeria Needs Aircraft Leasing Companies- Captain Abdulsalami Mohammed

                    Interview with Jennifer Blanke, Vice President Agriculture, Human and Social Development at the African Development Bank Group, Ahead of the 2019 Gender Summit

                    Interview with Jennifer Blanke, Vice President Agriculture, Human and Social Development at the African Development Bank Group, Ahead of the 2019 Gender Summit

                    Now is the Time to Partake in Nigeria’s Next Level Roadmap – Damilola Ogunbiyi

                    Now is the Time to Partake in Nigeria’s Next Level Roadmap – Damilola Ogunbiyi

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                      Her Excellency Hon Reem Ebrahim Al Hashimy, Minister of State for international Cooperation, United Arab Emirates Emerges PSG Minister of the Week

                      Her Excellency Hon Reem Ebrahim Al Hashimy, Minister of State for international Cooperation, United Arab Emirates Emerges PSG Minister of the Week

                      Hon Aisha Jumwa, Minister of Public Service, Gender & Affirmative, Kenya has Emerged APS Minister of the Week

                      Hon Aisha Jumwa, Minister of Public Service, Gender & Affirmative, Kenya has Emerged APS Minister of the Week

                      Hon Aisha Jumwa, Minister of Public Service, Gender & Affirmative, Kenya has Emerged APS Minister of the Week

                      Hon Aisha Jumwa, Minister of Public Service, Gender & Affirmative, Kenya has Emerged APS Minister of the Week

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                      Ambassador John Mwangemi, Chief Executive Officer, Kenya Ports Authority Emerges APS “CEO OF THE WEEK”

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                      His Excellency Dr. Belete Molla, Minister of Innovation & Technology, Ethiopia Emerges APS Minister of the Week

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                      HE Mrs Fatim Zahra Ammor, Ministry of Tourism, Handicrafts & Social Economy of Morocco Emerges APS Minister of the Week

                      Mr Alphayo J. Kidata, Commissioner General, Tanzanian Revenue Authority Emerges APS “CEO OF THE WEEK”

                      Mr Alphayo J. Kidata, Commissioner General, Tanzanian Revenue Authority Emerges APS “CEO OF THE WEEK”

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                      Home Featured

                      Why Govts Should Hike Taxes on Alcohol, Tobacco and Sugar

                      Public Sector Global by Public Sector Global
                      November 1, 2022
                      in Featured
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                      Why Govts Should Hike Taxes on Alcohol, Tobacco and Sugar
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                      Twenty-eight lives are lost every minute to heart disease, cancer, diabetes, liver disease or chronic respiratory ailments. Twenty-five out of those deaths happen in low- and middle-income countries – where the populations are less protected and therefore face greater danger from, among other things, tobacco use, excessive alcohol consumption, and unhealthy diets.

                      Forty-one million people die each year from these non-communicable diseases (NCD) – 71% of all deaths globally, and more than 15 million of them are between the ages of 30 and 69 years. Heart diseases, 17.9 million people, account for most NCD deaths each year, followed by cancer (9.3 million), respiratory diseases (4.1 million), and diabetes (1.5 million). Smoking, excessive drinking of alcohol and unhealthy diets all boost the chances of dying from an NCD.

                      Many of these premature deaths can be avoided if countries enact forceful measures to reduce the risk of their citizens falling prey to these diseases.

                      Making it more expensive to consume tobacco, health-harming alcohol, and sugar-sweetened beverages is key to governments achieving this very important economic and social goal. Healthier populations mean less pressure on government coffers, greater labor force participation, and stronger economic output in the long run.

                      It is important to note that the proposal isn’t to impose a tax on all unhealthy foods – which would disproportionately affect the poor – but to target sugar-sweetened beverages. They are a significant factor in diets linked to obesity and diabetes, and over 50 countries have already imposed such levies.

                      In the near-term, the COVID-19 pandemic has dealt a major blow to the finances of many countries, a burden now compounded by soaring food and energy prices as well as rising interest rates. Too many low-income countries are in or near distressed debt levels.

                      The threat posed by inflation to basic standards of living means it is understandably the immediate priority of leaders around the world. But getting a handle on rising prices and protecting the health of the population are not mutually exclusive.

                      International financial institutions have highlighted the role that “targeted fiscal support” by governments can play in softening the impact of inflation on their most vulnerable, but warned that such policies must be counterbalanced by increased taxes or lower government spending.

                      This is where raising the prices of health-harming products through excise taxes comes in. They are an especially relevant fiscal policy tool in any broader package of governments’ response efforts in the wake of the pandemic.

                      Many developing countries also face growing risks of a debt crisis, and need to put policies in place to reduce deficits sustainably.

                      Estimates by the Center for Global Development suggest that health taxes, even excluding fuel taxes, could close at least half of the revenue shortfall of low- and middle-income countries in the near term.

                      Aside from the clear health benefit – saving lives – well-crafted health taxes would generate much needed funds. Low and middle-income nations could raise up to 0.6-0.7 percent of GDP in additional tobacco, alcohol, and sugar-sweetened beverages revenues as a short- to medium-term revenue benchmark. The amount of revenue brought in would depend on many factors, including consumption level, institutional capacity, how much demand for the harmful products in a particular country is tied to their costs, existing tax rates, and structures.

                      As for how this would work in the current high-inflation environment, taxes on harmful products should be regularly or automatically tied to consumer price inflation data or indexed to nominal per capita GDP or nominal wage growth where timely data is available. This will ensure the tax base isn’t eroded, discourage unhealthy consumption habits, promote improved population health, and reduce health spending by governments.

                      Automatic indexation to maintain the real value of health taxes would not be a significant contributor to overall inflation. For example, the weight of tobacco, alcohol and non-alcoholic drinks in India’s  CPI  is 3.64 percent. Increasing excises by 10 percent to recoup losses for inflation in India in 2020 and 2021 would add less than 0.2 percent to annual inflation (assuming that taxes are half of retail prices). And, if additional health taxes provided room for fiscal authorities to lower taxes on other items, such as food or fuel, there would be no overall inflationary impact at all.

                      The World Bank and IMF, in their roles as international financial institutions, could do significantly more to promote health taxes in their lending programs to fill fiscal gaps, building on quite extensive past experience with support from the WHO and academic experts.

                      Health taxes have an important role to play in countries’ medium-term revenue strategies. After going into the red to combat the COVID-19 pandemic, this would help restore confidence in their fiscal policies, improve the overall health of the population, and increase the resources at governments’ disposal to build back better.

                      Amanda Glassman, executive vice president and senior fellow at the Center for Global Development (CGD), and Chris Lane, a non-resident fellow at CGD and former leader, change manager, and spokesperson at the International Monetary Fund (IMF) during 1994-2020

                      Tags: Tobacco and SugarWhy Govts Should Hike Taxes on Alcohol
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                      ECOWAS shares dialogue, negotiation and mediation capacity building experiences at The Hague

                      Regional Experts meet to review the operationalization of ECOWAS Informal Trade Regularization Support Program (PARCI/ITRSP)

                      April 1, 2023
                      President Samia Congratulates and set Tanzania- UK Ties  for Greater Heights

                      UK-Asia trade deal to boost UK economy by 0.08%

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