Ethiopia Takes Bold Strides on Health Taxes to Drive Universal Health Coverage

Zawya

17-07-2025

In a landmark show of political will and multisectoral collaboration, the Ethiopian House of Peoples' Representatives (HPR), the Ministry of Health, and partners are spearheading one of Africa's most promising health financing reforms. By embracing health taxes as a strategic tool, Ethiopia has started strengthening its national health system, curbing the rise of noncommunicable diseases (NCDs), and advancing its journey toward Universal Health Coverage (UHC).
This momentous collaboration was showcased during a high-level training workshop held from 13 to 14 June 2025 in Adama, Ethiopia. The forum was jointly organized by WHO Ethiopia and the Ministry of Health, in partnership with the Inter-Parliamentary Union (IPU), and with generous financial support from the Government of Norway.
The two-day event brought together 63 MPs and parliamentary staff as well as 13 senior officials of the Ministry of Health, reaffirming the critical role of legislative bodies in shaping public health through economic policy.
The workshop focused on consolidating the capacity of lawmakers to further understand and champion health taxes—specifically excise taxes on tobacco, alcohol, and sugar-sweetened beverages. These taxes are globally recognized for their dual impact: they discourage the use of harmful products while generating sustainable revenue to fund essential health services.
In her opening remarks, H.E. Lomi Bedo, Deputy Speaker of the House of Representatives, emphasized the transformative power of Ethiopia's 2020 excise tax law. 'By raising taxes on tobacco, alcohol, and other harmful products, Ethiopia has taken a critical step toward safeguarding public health and promoting healthier communities,' she stated. 'Increasing prices on unhealthy commodities remains one of the most effective strategies to reduce their consumption and associated health risks, including addiction and premature death.'
Her remarks echoed the growing recognition of Parliament's proactive legislative stance—one that aligns with the nation's development vision and its commitment to achieving the Sustainable Development Goals (SDGs).
Ethiopian State Minister of Health H.E. Dr. Dereje Duguma on his part warned that misleading narratives from the tobacco industry persist—particularly claims that more than 50% of the tobacco market has turned illicit post-legislation. He stressed the importance of evidence-based policymaking and pledged the Ministry's continued collaboration with Parliament, WHO, and all development partners to strengthen tax administration and uphold Ethiopia's progress toward UHC and NCD control.
Delivering a keynote address, Dr. Owen Laws Kaluwa, WHO Representative to Ethiopia, praised Ethiopia's leadership in adopting bold and effective non-traditional mechanisms to raise additional funds for the country. 'Stronger health systems enable countries to allocate scarce resources to their most pressing priorities,' Dr. Kaluwa said. 'The 2020 excise tax legislation remains one of the most impactful policy tools for reducing the consumption of harmful products while boosting domestic revenue.'
Dr. Kaluwa highlighted that WHO's support to Ethiopia is part of a multi-year project on health taxes implemented in collaboration with IPU and funded by the Norwegian Government. As a priority country in this initiative, Ethiopia is receiving targeted technical assistance for policy analysis, tax implementation, and improved access to NCD treatment and care.
Throughout the workshop, MPs and parliamentary technical staff deliberated on the latest global and national evidence on the effectiveness of health taxes. Participants engaged in hands-on sessions using updated policy briefs, data, and technical tools designed to inform legislative decisions and sustain tax implementation in the long term.
Key discussions focused on the importance of Parliament's role in maintaining robust tax systems, supporting annual adjustments, and shielding policy development from industry interference. Participants reaffirmed their commitment to advancing fiscal policies that prioritize public health and social equity.
Health taxes have gained wider recognition globally as part of a broader push to combat NCDs—conditions such as cardiovascular disease, cancer, diabetes, and other chronic illnesses that account for more than 70% of global deaths and disproportionately affect low- and middle-income countries. Ethiopia's approach—grounded in science, backed by policy, and supported by partners—demonstrates how strategic legislation can serve both public health and economic resilience.
Looking ahead, WHO Ethiopia reaffirmed its dedication to working alongside Parliament, the Ministry of Health, the Ministry of Finance, and other stakeholders to reinforce Ethiopia's health financing landscape. This includes ensuring that health taxes are not only implemented but effective, efficient, and accountable public financial management systems are necessary for the additional revenues to reach and be accountable for expenditure objectives.
'Health taxes are not just a revenue tool—they are a health-saving, life-preserving measure,' Dr. Kaluwa concluded. 'Ethiopia's continued leadership in this space is not only commendable but also offers a blueprint for the region and beyond.'
As the country continues its path toward UHC, Ethiopia's experience highlights the power of political commitment, intersectoral collaboration, and strategic investment in health. The success of its health tax policy and administration illustrates how even modest fiscal interventions can yield transformative outcomes—saving lives, strengthening systems, and building a healthier future for all.
Distributed by APO Group on behalf of World Health Organization (WHO) - Ethiopia.