Ministry of Health Proposes Higher Taxes on Tobacco and Alcohol to Boost 2026 Budget

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By: Saidu Jalloh

During the 2026 budget hearing at the Ministry of Finance, the Ministry of Health requested a total of NLe 691,955.85 for recurrent and capital expenditures. The Ministry emphasized that a portion of this revenue could be generated through increased taxes on tobacco, alcohol, and other harmful products.

Dr. Tom Sesay, presenting the proposal, stressed the need to revise and raise the health sector’s budget ceiling while ensuring timely execution in fiscal years 2025 and 2026. He argued that investing in health would “transform outcomes, increase life expectancy, and reduce costs for citizens.”

The proposed 2026 budget covers funding for public and faith-based hospitals, mobile clinics (“hospitals on wheels”), the National Emergency Medical Service (NEMS) referral system, expanded immunization programs, laboratory and blood services, non-communicable diseases (NCD) and mental health initiatives, as well as overseas medical treatment.

For capital projects, Dr. Sesay outlined plans to build a pharmaceutical-grade warehouse, construct the Port Loko Hospital, and expand emergency services.

Acknowledging challenges related to low revenue generation from health facilities largely due to free healthcare and subsidies Dr. Sesay pointed to excise duties as a potential revenue source. He noted that a 30% tax on tobacco products was introduced under the 2027 Finance Act, while the 2024 Finance Act reinstated “sin taxes” on alcohol, cigars, cigarettes, and sugary drinks.

Earlier, Deputy Minister of Health, Professor Sahr Senesie, highlighted that the 2026 budget theme, “Life-Saving Investment FY2026,” reflects the government’s commitment to health. He acknowledged progress in reducing maternal mortality and noted ongoing investments in infrastructure, renewable energy, and human resources, including the planned pin-coding of over 3,000 nurses by next year.

 

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