Gambiaj.com – (BANJUL, The Gambia) – The African Tax Administration Forum (ATAF) is calling on African governments to adopt stronger tobacco taxation policies, arguing that the measures could both save millions of lives and boost much-needed government revenue.
Launched in 2023, ATAF’s health taxes initiative places tobacco taxation at the heart of efforts to address one of the world’s leading preventable causes of death, while also helping countries close financing gaps for development and public services.
According to the World Health Organization (WHO), tobacco kills eight million people each year. Evidence shows that raising prices through taxation is the most effective way to discourage consumption.
For Africa—where health budgets are under strain and public debt is rising—the stakes are especially high.
“African countries face the dual challenge of protecting public health and financing development. Tobacco taxes offer a proven way to do both,” ATAF noted in its 2023 African Tax Outlook, which featured a dedicated analysis of tobacco taxation across the continent.
Financing Gaps and Fiscal Pressures
The continent faces an annual $194 billion financing gap to achieve the UN Sustainable Development Goals (SDGs) by 2030, part of a global shortfall of $1.6 trillion. At the same time, domestic health spending averaged just 7.3 percent in 2020—far below the 15 percent Abuja Declaration target—while debt servicing reached a record $1.4 trillion in 2023.
With tax-to-GDP ratios averaging only 15 percent—less than half the OECD benchmark—ATAF says health taxes represent an underutilized revenue stream that can help governments balance fiscal and social needs.
Building Capacity and Supporting Implementation
To ensure effective adoption, ATAF has invested heavily in research, training, and technical assistance. Its Tax Academy has already trained over 400 officials from more than 30 countries in tobacco and excise tax administration, with a second training cohort scheduled for September 2024.
Practical resources are also being rolled out. A Policy and Administrative Guide for Tobacco and Excise Taxation will be launched at ATAF’s Annual Meetings, offering governments a roadmap for designing and enforcing health tax policies. ATAF is also supporting Zambia to strengthen its excise tax administration, with similar assistance planned for other countries.
A Continental and Global Voice for Saving Lives and Strengthening Systems
Beyond technical support, ATAF is working with the UN, WHO, World Bank, OECD, and the African Tobacco Tax Consortium to ensure African priorities are represented in global tax policymaking. This multistakeholder approach, the forum says, is crucial for harmonizing strategies and amplifying Africa’s influence in shaping health tax frameworks.
By combining fiscal strategy with public health goals, ATAF argues tobacco taxation can deliver a “dual impact”: lowering smoking rates while generating funds to strengthen health systems, finance preventive care, and support social programs.
“The urgency to act is clear,” ATAF emphasized. “Through well-designed tobacco taxes, Africa can reduce preventable deaths, mobilize domestic resources, and lay the foundation for a healthier, financially resilient continent.”
