Sugary drinks tax too small to save lives, CAPPA warns

… Urges FG to rise levy, backs Tinubu”’s wellness taxation plan

By Chioma Obinna

TheCAPPA, has warned that Nigeria’s existent N10 taxation connected sugary drinks is  too tiny to prevention lives, adjacent arsenic it welcomed a caller Federal Government program to transmission revenues from alcohol, tobacco, and brushed drinks into wellness financing.

The informing followed a disclosure by the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, who revealed astatine a nationalist wellness financing dialog successful Abuja that a draught argumentation to earmark excise-tax revenues for healthcare is astir acceptable and volition soon beryllium submitted to the Minister of Health and Social Welfare.

While describing the determination arsenic a bold step, CAPPA said Nigeria indispensable rise the levy connected sugar-sweetened beverages (SSBs) acold supra the existent N10 per litre if it is superior astir tackling rising deaths from diabetes, bosom disease, and different non-communicable diseases (NCDs).

“We commend the authorities for proposing to earmark the revenues from SIN taxation to nationalist health, arsenic agelong advocated by WHO, CAPPA and different pro-public wellness civilian nine organisations successful Nigeria. However, we indispensable emphasise that successful the lawsuit of sugary drinks, the interaction of this draught argumentation volition lone beryllium maximised if Nigeria importantly raises SSB taxation from the existent N10 per litre to astatine slightest N130 per litre, adjustable to inflation,” said Akinbode Oluwafemi, Executive Director of CAPPA.

Nigeria introduced the N10 per litre excise work nether the 2021 Finance Act, but CAPPA argues that the magnitude is “grossly inadequate,” representing little than 1 percent of the terms of a emblematic 50cl vessel of soda.

“Such a token measurement cannot meaningfully discourage excessive depletion oregon make important revenue,” Oluwafemi warned. “By contrast, an summation to a minimum of N130 per litre would make up to N729 cardinal annually, according to adept investigation by the Centre for the Study of the Economies of Africa (CSEA). This gross could offset the estimated N493.3 cardinal Nigeria presently spends each twelvemonth treating SSB-related diseases specified arsenic diabetes and cardiovascular conditions.”

He added that the higher levy would not lone prevention lives but besides propulsion beverage manufacturers to trim sweetener contented successful their products, thereby promoting healthier diets.

According to CAPPA, Nigeria is already facing a nationalist wellness emergency, with astir 30 percent of each deaths linked to NCDs driven by excessive depletion of sugar, salt, intoxicant and tobacco. Health experts pass that the rising load could overwhelm already fragile wellness facilities if unchecked.

The group’s telephone echoes caller World Health Organisation (WHO) proposal to subordinate states, including Nigeria, to rise excise taxes connected sugary drinks, intoxicant and baccy by astatine slightest 50 percent implicit the adjacent decade. Under its planetary “3 by 35 Initiative,” WHO projects that specified measures could avert 50 cardinal premature deaths worldwide successful the adjacent 50 years portion besides generating captious funds for struggling wellness systems.

“We spot this draught argumentation arsenic a promising start,” Oluwafemi stressed. “But unless the taxes are benchmarked astatine effectual levels, Nigeria risks missing the accidental to chopped consumption, support citizens, and make the captious funds our healthcare strategy desperately needs.”

Beyond sugary drinks, CAPPA besides urged the authorities to fortify intoxicant and baccy taxes, insisting that lone a broad attack would safeguard nationalist wellness and unafraid sustainable financing for the nation’s wellness sector.

The station Sugary drinks taxation excessively tiny to prevention lives, CAPPA warns appeared archetypal connected Vanguard News.