ATAF, BMGF Launch New Tobacco Tax Project to Boost Health and Revenue in Africa
By Patience Ikpeme
The African Tax Administration Forum (ATAF) has joined forces with the Bill and Melinda Gates Foundation (BMGF) to introduce a groundbreaking initiative aimed at implementing robust tobacco taxation policies across African countries.
This strategic partnership wants to curb the adverse public health impacts of tobacco use while sustaining domestic revenue mobilization on the continent.
The collaborative effort between ATAF and BMGF is motivated by findings from the African Tax Outlook (ATO), which highlighted a lower tax-to-GDP ratio in Africa compared to other regions. By enhancing tobacco tax policies and administration, the project aims to drive Domestic Revenue Mobilization (DRM) without imposing undue economic burdens on taxpayers.
Tobacco taxation has been identified as a potent tool for achieving Sustainable Development Goal 3 (SDG 3) and advancing Agenda 2063 Goal 3, promoting healthier lives and well-being for African citizens by potentially altering behaviors through increased tobacco costs.
The project will encompass the development and implementation of effective tobacco tax strategies tailored to African situations. It will provide expert guidance and capacity-building opportunities for policymakers, tax administrators, and civil society organizations devoted to tobacco control.
Moreover, the initiative is envisioned to extend beyond tobacco to cover other harmful products like alcoholic beverages and sugar-sweetened beverages under the excise tax regime, thereby further enhancing domestic revenue mobilization and aligning with broader health objectives.
The initiative is rooted in compelling evidence that raising tobacco prices through taxation is the most efficacious measure for reducing tobacco consumption. Notably, the World Health Organization (WHO) underscores that tobacco remains the foremost preventable cause of death globally, responsible for eight million deaths annually.
The WHO Framework Convention on Tobacco Control (WHO FCTC) has played a pivotal role in advocating for price and tax measures to reduce tobacco consumption, with 43 African member states ratifying this treaty. The project aims to leverage these international frameworks to strengthen tobacco tax policies and enforcement across the continent.
The project will address critical policy and tax administration challenges, including: developing effective tax structures and rates through tailored toolkits; regulating new and emerging tobacco and nicotine products, such as electronic cigarettes, which currently lack adequate taxation in many African countries; combatting tax evasion and illicit trade in tobacco products, aligning with international protocols like the WHO Protocol to Eliminate Illicit Trade in Tobacco Products and; enhancing tax administration capacities to monitor compliance and combat illicit trade using state-of-the-art technologies like production monitoring and track-and-trace systems.
ATAF’s approach involves rigorous research and analysis of existing tobacco taxation policies and tax administration systems in African countries. This groundwork will inform tailored capacity-building programs, technical assistance materials, and hands-on support to facilitate effective tobacco tax policy design and implementation.
The project will also emphasize ongoing monitoring and evaluation to gauge the effectiveness of implemented tobacco taxation policies in revenue generation and public health outcomes. Knowledge sharing through policy briefs, workshops, and conferences will further disseminate project findings and best practices across the continent.
The launch of this innovative tobacco tax project marks a significant milestone in advancing public health and revenue mobilization in Africa. By leveraging international partnerships and evidence-based strategies, ATAF and BMGF aim to empower African nations in combating the harms of tobacco use while fostering sustainable economic growth and well-being for all citizens.
