Gambia GRA: Public Health, Not Just Revenue, Drives Tobacco Tax Policy

• GRA Commissioner General Yankuba Darboe advocates for higher tobacco taxes to reduce smoking and prevent disease, emphasizing public health over mere revenue generation.
• The Gambia's specific excise tax on cigarettes has increased from D5 to D45 per pack since 2013, complemented by an environmental tax and a Tobacco Control Levy.
• Tobacco imports in The Gambia fell by 60% between 2012 and 2016, while government revenue from tobacco simultaneously increased from D155 million to D420 million.
• Concerns were raised regarding the proper allocation and access to funds collected via the Tobacco Control Levy, which are designated for public health initiatives.
• Darboe called for greater cooperation among government and health bodies to establish mechanisms ensuring that tobacco control funds are utilized for their intended programs.

Success in tobacco taxation, therefore, should also be measured by whether fewer individuals initiate smoking, whether current smokers reduce their consumption or quit, and whether the overall health burden associated with tobacco use is diminished.

The Gambia Revenue Authority (GRA) has issued a call for enhanced collaboration between the nation's tax and health sectors, advocating for a strategic approach to tobacco taxation. Yankuba Darboe, the Commissioner General of the GRA, articulated that the efficacy of tobacco taxes should not be solely evaluated by the revenue they generate. Instead, he emphasized their broader purpose: to render cigarettes less affordable, thereby discouraging consumption and mitigating non-communicable diseases.

Mr. Darboe presented these insights at the National Public Health Convergence 2.0, an event orchestrated by the Association of Public and Environmental Health Officers of The Gambia (APEHOG). The convergence was themed "Securing Tomorrow: Strengthening Public Health through Science, Innovation and Sustainable Interventions in The Gambia." He underscored that the primary goals of such taxation should include preventing young individuals from initiating smoking and motivating current smokers to either reduce their intake or cease entirely. Success in tobacco taxation, therefore, should also be measured by whether fewer individuals initiate smoking, whether current smokers reduce their consumption or quit, and whether the overall health burden associated with tobacco use is diminished.

The Gambia has progressively refined its Gambia GRA tobacco tax policy over the past decade. In 2013, the nation transitioned from a system predominantly based on the weight of cigarettes to a specific excise tax of D5 per pack of 20 cigarettes. This initial specific excise tax on Gambia excise tax cigarettes has since seen a substantial increase, now standing at D45 per pack.

Concurrently, the environmental tax has also undergone significant modification, evolving from a weight-based charge to a fixed rate of D9.22 per pack. Furthermore, a Tobacco Control Levy Gambia was introduced, initially set at D0.20 per pack, which has also been subsequently increased. These adjustments reflect a concerted effort to leverage fiscal measures for public health outcomes.

Data compiled by the Gambia Revenue Authority (GRA) under Commissioner General Yankuba Darboe's oversight illustrates the dual benefits of this public health tobacco taxation Gambia strategy. Between 2012 and 2016, the country experienced a notable decline in tobacco imports, which fell by approximately 60% from about 1.12 million kilograms to 440,000 kilograms. This reduction in imports aligns directly with public health objectives.

Simultaneously, the government's revenue derived from tobacco products witnessed a significant increase during the same period, rising from approximately D155 million to D420 million. Mr. Darboe highlighted that these figures demonstrate that public health objectives and domestic revenue mobilization can be pursued simultaneously, offering a dual benefit to the nation. This outcome underscores the effectiveness of the Gambia Revenue Authority tax strategy in achieving both fiscal and health-related goals.

Despite the successes in revenue generation and import reduction, Mr. Darboe also voiced concerns regarding the allocation and utilization of funds collected through the Tobacco Control Levy. This levy was specifically established to support critical tobacco control activities, including prevention campaigns and public education initiatives. However, he acknowledged that the health sector has raised concerns about challenges in accessing these designated funds.

While affirming the GRA's commitment to diligently collect and account for these monies in strict accordance with legal provisions, Mr. Darboe urged other government institutions to establish robust mechanisms. These mechanisms are crucial to ensure that funds specifically earmarked for tobacco control are indeed channeled towards their intended programs. He further stressed the imperative for enhanced cooperation among key stakeholders, including the Ministry of Health, the Ministry of Finance and Economic Affairs, the GRA, and the World Health Organization, to effectively manage and deploy these vital resources.

Lawyers advising tobacco companies in The Gambia should anticipate potential future increases in excise and environmental taxes on tobacco products, driven by public health objectives rather than solely revenue generation. Compliance officers should monitor legislative developments regarding these taxes and the administration of the Tobacco Control Levy, especially concerning fund allocation for tobacco control activities.

Source: Original reporting via Foroyaa