Ethiopia steps up health tax reforms to drive universal coverage
WHO, Parliament laud excise policy as model for Africa’s health financing future
ADAMA, Ethiopia (MNTV) — Ethiopia is accelerating efforts to reform its health financing system by strengthening health tax policies aimed at curbing noncommunicable diseases (NCDs) and advancing universal health coverage (UHC), with strong backing from the World Health Organization (WHO) and the country’s parliament.
In a high-level workshop held in Adama from June 13–14, 2025, 63 lawmakers, parliamentary staff, and senior health officials convened to enhance legislative support for excise taxes on harmful products including tobacco, alcohol, and sugar-sweetened beverages.
The two-day forum, co-organized by WHO Ethiopia and the Ministry of Health, received support from the Inter-Parliamentary Union (IPU) and was funded by the Government of Norway, according to WHO.Africa.
Lomi Bedo, deputy speaker of the House of Peoples’ Representatives, highlighted the impact of Ethiopia’s 2020 excise tax law, calling it a key tool in reducing the consumption of harmful substances and promoting public health.
“Raising prices on tobacco and alcohol is one of the most effective ways to reduce addiction, disease, and premature death,” she said.
The legislation forms part of Ethiopia’s broader development agenda and commitment to the Sustainable Development Goals (SDGs).
According to Dr. Dereje Duguma, State Minister of Health, the Ministry is working closely with Parliament and partners to counter misinformation from the tobacco industry and ensure evidence-based policymaking.
He noted that claims about a surge in illicit tobacco trade following the tax increase are misleading and not supported by data.
WHO Representative to Ethiopia Dr. Owen Laws Kaluwa praised the government’s “bold and innovative” use of health taxes, saying the approach enables Ethiopia to mobilize domestic resources while improving health outcomes.
“The 2020 excise law is one of the country’s most powerful tools to reduce NCDs and fund essential health services,” he said.
Kaluwa added that WHO’s support to Ethiopia is part of a regional initiative supported by the Norwegian government and implemented with IPU.
Ethiopia is among the key countries benefiting from targeted technical assistance in tax design, implementation, and NCD care expansion.
The workshop included practical sessions and policy briefings to help MPs assess global and national evidence on health tax effectiveness.
Discussions emphasized Parliament’s role in sustaining tax reforms, guarding against industry influence, and ensuring revenue is channeled into public health priorities.
Globally, health taxes have been recognized for their dual benefit of improving population health while generating reliable fiscal resources.
NCDs such as heart disease, cancer, and diabetes account for over 70% of deaths worldwide, with a disproportionate impact on low- and middle-income countries like Ethiopia.
Looking ahead, WHO reaffirmed its support for Ethiopia’s efforts to strengthen health financing institutions and improve the transparency and efficiency of tax revenue allocation.
The organization stressed that proper financial oversight is essential to ensure that health taxes achieve their intended impact.
“Health taxes are not just about revenue—they’re about saving lives,” Dr. Kaluwa said. “Ethiopia’s leadership sets a strong example for the continent.”
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