Health Advocates Back New Tax Policy, Demand Stronger Excise On Tobacco, Others

Corporate Accountability and Public Participation Africa (CAPPA) has applauded the national government’s determination to earmark revenues from excise taxes connected alcohol, tobacco, and sugar-sweetened beverages (SSBs) for wellness financing, portion urging a important hike successful the taxation connected sugary drinks to curb Nigeria’s rising wellness burden.

At a nationalist wellness financing dialog successful Abuja, president of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, disclosed that a draught argumentation is being finalised to transmission excise-tax revenues into nationalist health. The policy, helium said, volition soon beryllium submitted to the Minister of Health and Social Welfare for consideration.

Reacting to the improvement successful a connection connected Monday, CAPPA described the inaugural arsenic a decisive accidental for the medication of President Bola Ahmed Tinubu to found sustainable backing for Nigeria’s healthcare strategy and safeguard citizens’ health.

The radical noted that non-communicable diseases (NCDs), linked to excessive depletion of sugary beverages, alcohol, salt, and tobacco, are present liable for astir 30 per cent of each deaths successful Nigeria, making the concern a nationalist wellness emergency.

“By initiating this draught policy, the national authorities has demonstrated committedness towards tackling the upsurge of NCDs successful the country,” CAPPA said.

However, it stressed that the interaction of the argumentation would lone beryllium afloat realised if excise rates are importantly accrued to discourage depletion and rise meaningful revenue.

Akinbode Oluwafemi, Executive Director of CAPPA, commended the government’s courageousness but insisted that the existent N10 per litre sugary drinks tax, introduced successful the 2021 Finance Act, is acold excessively debased to execute its purpose.

“At N10 per litre, the taxation represents little than 1 per cent of the retail terms of a emblematic brushed drink, which is grossly inadequate. We are calling for a minimum of N130 per litre, adjustable to inflation,” helium said.

According to CAPPA, adept investigation from the Centre for the Study of the Economies of Africa (CSEA) shows that a hike to N130 per litre could make arsenic overmuch arsenic N729 cardinal annually. This gross could offset the estimated N493.3 cardinal spent each twelvemonth treating SSB-related diseases specified arsenic diabetes and cardiovascular conditions.

The radical argued that higher taxes would not lone trim the country’s SSB depletion but besides promote manufacturers to reformulate their products with little sugar, yet promoting healthier diets.

It further called for stronger baccy and intoxicant taxation astatine levels precocious capable to discourage harmful usage and safeguard nationalist health.

The World Health Organisation (WHO) has besides urged Nigeria and different subordinate states to summation excise taxes connected sugary drinks, alcohol, and baccy by 50 per cent implicit the adjacent decennary arsenic portion of its “3 by 35 Initiative.” The bureau believes specified measures could forestall 50 cardinal premature deaths globally wrong the adjacent 50 years.

“Health taxes are a win-win, curbing deadly depletion habits portion providing captious funds for overstretched wellness systems,” Oluwafemi said.