Group Advocates More Tax on Sugar-Sweetened Beverage to Fight Cancer, Other Diseases

• Corporate Accountability and Public Participation Africa wants the tax imposed on Sugar-Sweetened Beverages to be increased
• It stated that the increment would be effective in curtailing addiction to sweetened drinks, thereby reducing non-communicable diseases
• A researcher stated that the SSB tax rise offers a unique chance for the government to get more revenue for the improvement of health sectors

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Corporate Accountability and Public Participation Africa (CAPPA) has called for an increase in tax on Sugar-Sweetened Beverages (SSB) in Nigeria.

It disclosed this at its public presentation of the simulation study titled "Potential Fiscal and Public Health Effects of SSB tax in Nigeria" on Thursday, February 29, 2024

Akinbode Oluwafemi, the executive director of CAPPA, established that tax raises are sometimes necessary on certain products, such as SSBs, considered to have health implications.

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He recalled that Nigeria's introduction of the N10 per litre excise charge on sugar-sweetened beverages (SSBs) under the Finance Act in 2021 was celebrated as a victory for public health.

Based on analysis, he said the 2021 SSB tax of N10 per litre was a fixed tax that is not inflation-adjustable. Hence, it may be worth less than four kobos

He stated that a flexible framework for inflation needs to be included in the 2024 Fiscal Act, along with a significant rise in the SSB tax.

Oluwafemi said that to forge an agreement on a tax system that could effectively combat the pandemic of non-communicable diseases (NCDs) in Nigeria, CAPPA prioritises intergenerational engagement.

He said:

“It is no longer news that the increase in NCD cases in Nigeria is alongside the rise in consumption of SSBs, alcohol, tobacco, trans-fat, unhealthy consumption of salt and other diets that are non-nutritive and harmful to the body.“

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According to him, the prevalence of diseases in Nigeria also keeps many people impoverished since they have to spend a large portion of their income on deficient diets, which raises healthcare expenses and worsens matters for the populace.

“It is a cycle that needs to break. In a country with more than 80% of its population paying for healthcare out-of-pocket, we must find a policy pathway that will effectively remove obstacles to good health and national productivity like modifiable risk factors of consumption-related diseases and other NCDs.”

He added:

“The argument of the people who care more about their profit over public health on consumption needs does not outweigh the many benefits inherent in this tax.

“The damages done to families and loved ones who cater for the sick are enough motivation to see the public rally round the government in doing what is right for the general public. The cries and woes of the Armageddon by paid agents and allies of the SSB industry must not drown the voice of reason and the genuine concern for our welfare.”

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According to Fidelis Obaniyi, Research Associate at the Centre for the Study of the Economies of Africa (CSEA), who presented the data, the SSB tax increase offers the government a unique opportunity to raise government revenue in addition to its favourable impacts on public health.

Obaniyi estimates that the position of more excise tax from N10 per litre to N130 per litre will bring in N729 billion in revenue, a 972% increase.

He argued that by carefully distributing this extra money through earmarking, the nation's healthcare system—fundamental healthcare, which is currently beset by a lack of funding—could be reinforced.

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Source: Legit.ng