CAPPA calls for increment in SSB tax from N10 to N130 

Corporate Accountability and Public Participation Africa (CAPPA) has called for a review of the current tax placed on sugar-sweetened beverages from N10 to N130 per litre.

The environment-focused non-governmental organisation made the proposition at the public presentation of the simulation study of the “Potential Fiscal and Public Health Effects of SSB tax in Nigeria” in Lagos, recently.

“The study we are presenting today as part of our contributions towards assisting government in determining the most effective SSB tax rate in Nigeria. An effective SSB tax regime will not only reduce consumption but also raise revenue accruable to the government,” said Akinbode Oluwafemi, the executive director of CAPPA.

“When Nigeria introduced the N10/litre Excise Duty on SSBs in 2021 through the Finance Act, it was celebrated as a win for public health, but as concerned advocates with history in the long battle against the menace of tobacco and the tobacco industry, it was important for us to take a critical look at the tax and its structure,” he added.

Akinbode said that “Since we began this campaign, we have emphasized the need for a multisectoral, interdisciplinary, multiprong approach that combines policy engagement with public awareness, community mobilisation, and stakeholder consultation and engagement.

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“We also prioritise intergenerational engagement to build consensus for an effective tax structure that will help us in the fight against the scourge of non-communicable diseases (NCDs) in Nigeria. This campaign ideology is based on the need for evidence-based campaigning towards evidence propelled decision by policymakers.

“It is no longer news that the increase in NCD cases in Nigeria is alongside the increase in consumption of SSBs, alcohol, tobacco, trans-fat, unhealthy consumption of salt and other diets that are non-nutritive and injurious to the body.”

Fidelis Obaniyi, a research associate at Centre for the Study of the Economies of Africa (CSEA) which carried out the study, noted that “The SSB tax targets beverages high in sugar content, such as soda, energy drinks, and sweetened fruit drinks.

“Globally, approximately 184,000 deaths are linked to the consumption of sugar-sweetened beverages (SSBs) every year.”

He added that SSB taxes have been implemented by over 100 governments globally,  including  Mexico, California (USA), and South Africa, to combat health issues like obesity and diabetes and increase government revenue.