CAPPA – Corporate Accountability and Public Participation Africa

‘FG can generate N729 billion from SSB tax increment’

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The Federal Government has been urged to increase the current tax on sugar-sweetened beverages (SSB) from N10 to at least N130 per litre to generate about N729 billion yearly for the economy.

Some experts, who advocated the increase in the tax, yesterday, during a two-day journalism training on SSB Tax and Industry Monitoring, organised by Corporate Accountability and Public Participation Africa (CAPPA) in Lagos State, said that the country loses an estimated N78.8 billion each year due to lost productivity, with N57.9 billion spent on informal care for those suffering from SSB-induced illnesses.

A Research Associate at the Centre for the Study of the Economies of Africa (CSEA), Fidelis Obaniyi, while presenting a paper titled “SSBs and Economic Impact on Household: Cost of Disease and Effective Taxation,” said that raising the SSB tax could generate as much as N729 billion yearly for the Nigerian government, while also addressing public health concerns.

Obaniyi stated that the direct medical costs associated with treating SSB-related diseases are even higher, amounting to N493.3 billion yearly, which represents 0.36 per cent of Nigeria’s Gross Domestic Product (GDP), which is three times the country’s current investment in research, science, and technology.

He further said that the proposed tax increase would significantly raise the prices of popular beverages, noting that the cost of malt drinks, carbonated drinks, and fruit juices could rise by approximately 25.8 per cent, 39.9 per cent and 36.6 per cent respectively.

In his welcome address, Executive Director of CAPPA, Akinbode Oluwafemi, acknowledged the Federal Government’s N10 per litre excise duty on carbonated sugary drinks as a positive step but said that it fell short of the World Health Organisation (WHO) recommendation for at least a 20 per cent increase in the final retail price of SSBs.

He also chided SSB manufacturers for exploiting regulatory gaps and engaging in deceptive marketing practices, such as lack of transparency in product content, misleading nutritional claims, and the absence of Front-of-Pack (FOP) labelling.

The Programme Director of Development Communication Network, Akin Jimoh, while speaking on the topic “Communicating Public Health Policies: The Role of Nigerian Journalists,” stressed that with the alarming rise in SSB consumption and the related public health challenges in Nigeria, journalists have a critical role to play. He urged them to help shape public perceptions, inform citizens, and hold policymakers accountable in efforts to reduce SSB consumption.

Source: Guardian NG

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