By Progress Godfrey, Abuja
The Corporate Accountability and Public Participation Africa (CAPPA), has called on the federal government to increase the Sugar-Sweetened Beverages (SSBs) Tax from N10/litre to N130/litre.
Speaking at the public presentation of the simulation study of the “Potential Fiscal and Public Health Effects of SSB tax in Nigeria”, in Abuja on Monday, the Executive Director of CAPPA, Akinbode Oluwafemi, said the call for an increase became necessary as SSBs impact the public health of Nigerians.
“Tax again? You might want to ask at this current period? Yes! Even economics teaches us that during economic crises, nations raise taxes on certain products that are considered not too critical. For SSBs, the issue here is Public Health and the real economic cost of overconsumption of SSBs,” he said.
Mr Oluwafemi recalled that the introduction of 10/litre Excise Duty on SSBs in 2021 through the Finance Act was celebrated, but the SSB Tax campaign saw the need for an increment to N130 due to inflation and the increased burden on Public Health.
According to him, CAPPA in its SSB Tax campaign stresses the need for a multisectoral, interdisciplinary, multiprong approach that combines policy engagement with public awareness, community mobilization, and stakeholder consultation and engagement. Crises
He said that CAPPA in its study, also prioritised intergenerational engagement to build consensus for an effective tax structure to help in the fight against the scourge of non-communicable diseases (NCDs) in Nigeria, adding that the ideology of the campaign is based on the need for evidence-based campaigning towards evidence propelled decision by policymakers.
He said, “It is no longer news that the increase in NCD cases in Nigeria is alongside the increase in consumption of SSBs, alcohol, tobacco, trans-fat, unhealthy consumption of salt and other diets that are non-nutritive and injurious to the body.
“We also understand the current socio-economic struggles of the average Nigerian in an economy that is witnessing too many shocks at the same time. However, the burden of diseases in Nigeria also continues to impoverish the people as many spend majority of their earnings on unhealthy diet, which leads to increased health costs, which further impoverishes the people. It is a cycle that needs to break. In a country with more than 80% of her 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.
“Going by the current inflation rate, the 10Naira per litre imposed on SSBs in 2021 is today possibly worth less than 4kobo because it was a fixed tax, not adjustable to inflation. In essence, the SSB tax needs to be increased significantly in the 2024 Fiscal Act, with a framework that is adjustable to inflation as we also begin the conversation about earmarking the tax or a sizeable portion of it for public health.
“While I will not preempt the discussion of the research team, the findings of this study have shown that at a minimum of #130/litre, we will see a significant drop in consumption and a decrease in Nigeria’s consumption-fueled diseases. I am further convinced that this document provides the government, including the executive and lawmakers, the much-needed data to pursue this policy pathway to a logical conclusion for the benefit of all.”
Mr Oluwafemi noted that the argument of the SSB industry which cares more about its 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, he added.
He said the report from the study presented serves as contribution towards assisting government in determining the most effective SSB tax rate in Nigeria, stating that an effective SSB tax regime will not only reduce consumption but also raise revenue accruable to the government.
He, therefore, thanked the Coordinating Minister of Health and Social Welfare, Professor Ali Pate for constituting the Ad-hoc inter-ministerial committee on the SSB tax that is constantly keeping government on its toes to act in the interest of the people.