A non-governmental organisation, Corporate Accountability and Public Participation Africa, has recommended that the Federal Government raise the national tax rate on sugar-sweetened beverages from N10 to N130 per litre.
The Research Associate, CAPPA, Fidelis Obadeyi, made the call during the launch of a research report on sugar-sweetened beverages in the Maryland area of Lagos State on Thursday.
Obadeyi said as a result of the higher tax rate, beverage costs will rise and customer demand will decrease.
He said, “The result of the tax stimulation shows that excise tax revenue is projected to increase by about 972 per cent, amounting to N729bn annually. The government should increase the tax to N130 instead of N10.”
He said the World Health Organisation had said approximately 184,000 deaths are linked to the consumption of sugar globally.
“SSBs are taxes levied on harmful products for our health. An increase in sugar can lead to heart disease, stroke, and obesity. According to the World Health Organisation, globally, approximately 184,000 deaths are linked to the consumption of sugar.
“The industries producing these products are aware of the dangers associated with the products. We believe that as a result of the tax increase, there will be an increase in the price of the goods, which will reduce demand.”
Also speaking, the Executive Director, CAPPA, Akinbode Oluwafemi, said Nigeria was the world’s fourth-largest consumer of sugar-sweetened beverages.
“However, as of now, a bottle of soda costs N300 but the government is still collecting the same tax and I suggest it should be increased. We need to take a step forward in providing local data on the physical impact of the sugar-sweetened beverages tax regime.”
A public health expert, Opeyemi Ibitoye, said the non-communicable diseases triggered by sweetened beverages could be reduced through effective communication and advocacy.
Source | Punchng
