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BRIEFOctober 31, 2024

Health Taxes in West Africa: Achievements and Opportunities in the Implementation of the ECOWAS and WAEMU Excise Directives

Aerial view of a city in Africa

In partnership with the ECOWAS Commission, the World Bank organized a 2-day regional workshop in Dakar on the 8th and 9th of October 2024.

Like many customs unions, ECOWAS and WAEMU have adopted directives to harmonize excise tax policy. Existing excise directives cover both tobacco and alcohol, with recent reforms modernizing the tobacco excise tax component, including adoption of a specific tax and increased tax rates. In line with these directives, several countries have implemented meaningful reforms, leading to an increased interest in health excise taxes in the region.

With over 60 participants, the workshop served as a platform for stakeholders from ECOWAS member states to share successes in reforming excise taxes on tobacco, alcohol, and sugar sweetened beverages. It also provided an opportunity to understand challenges and barriers to implementation, assess performance of the directives, and explore opportunities for future reforms and accelerated implementation across the region.

The workshop brought together senior technical decisionmakers from Ministries of Finance, Revenue and Customs authorities in the region, including representatives from 12 ECOWAS member states and 2 observer countries. Speakers and participants included the ECOWAS and WAEMU Commissions, international partners (IMF, OECD, and WHO), and regional partners including African Tax Administration Forum (ATAF), the West African Tax Administration Forum (WATAF), le Consortium pour la Recherche Économique et Sociale (CRES), the Research Unit on the Economics of Excisable Products at the University of Cape Town, and Tax Justice Network Africa.

Three smiling people at a workshop

Photo credit: World Bank

Panelist speaking at a workshop

Photo Credit: World Bank