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CAPPA Calls for Hike in Tax on Sweetened Beverages from N10 to N130/Litre

CAPPA Calls for Hike in Tax on Sweetened Beverages from N10 to N130/Litre

Adedayo Akinwale in Abuja

Company Accountability and Public Participation Africa (CAPPA) has demanded  an upward evaluate of Sugar Sweetened Drinks (SSB) tax from N10 to N130 per litre.

Its Government Director, Akinbode Oluwafemi, made the decision yesterday in Abuja on the public presentation of the simulation examine of the “Potential Fiscal and Public Well being Results of SSB tax in Nigeria”.

He nevertheless mentioned that the present socio-economic struggles of the typical Nigerian in an economic system that’s witnessing too many shocks on the identical time was nicely understood.

Oluwafemi famous that when Nigeria launched the N10/litre Excise Responsibility on SSBs in 2021 by the Finance Act, it was celebrated as a win for public well being.

However as involved advocates with a historical past within the lengthy battle towards the menace of tobacco and the tobacco trade, he mentioned it was vital for them to take a essential have a look at the tax and its construction.

He mentioned going by the present inflation charge, the N10 per litre imposed on SSBs in 2021 was probably nugatory than 4 Kobo as a result of it was a set tax, not adjustable to inflation.

The Government Director burdened that it was not information that the rise in non-communicable illnesses in Nigeria was alongside the rise in consumption of SSBs, alcohol, tobacco, trans-fat, unhealthy consumption of salt and different diets which can be non-nutritive and injurious to the physique.

Oluwafemi famous that the cries by “paid brokers” and allies of the SSBs trade should not drown the voice of motive and the real concern for folks’s welfare.

He identified that the damages accomplished to households and family members who cater for the sick are sufficient motivation to see the general public rally spherical the federal government in doing what is true for most of the people.

Oluwafemi acknowledged: “The burden of illnesses in Nigeria additionally continues to impoverish the folks as many spend the vast majority of their earnings on unhealthy food plan, which results in elevated well being prices, which additional impoverishes the folks.

“It’s a cycle that should break. In a rustic with greater than 80 per cent of her inhabitants paying for healthcare out-of-pocket, we should discover a coverage pathway that may successfully take away obstacles to good well being and nationwide productiveness like modifiable danger elements of consumption associated illnesses and different NCDs.”

Oluwafemi maintained that the argument of the individuals who care extra about their revenue over public well being on consumption wants doesn’t outweigh the numerous advantages inherent on this tax.

Oluwafemi added: “In essence, the SSB tax must be elevated considerably within the 2024 Fiscal Act, with a framework that’s adjustable to inflation as we additionally start the dialog about earmarking the tax or a sizeable portion of it for public well being.

“The findings of this examine have proven that at a minimal of N130/litre, we’ll see a big drop in consumption and a lower in Nigeria’s consumption fuelled illnesses. I’m additional satisfied that this doc offers the federal government, together with the chief and lawmakers the much-needed knowledge to pursue this coverage pathway to a logical conclusion for the advantage of all.”

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