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Tuesday, May 16, 2023

Coalition urges FG to increase sugar tax from ₦10 to ₦30

National Action on Sugar Reduction (NASR) has asked the federal government to increase the taxation on sugar beverages from ₦10 to ₦30.

• May 16, 2023
SWEET BEVERAGES
SWEET BEVERAGES

National Action on Sugar Reduction (NASR) has asked the federal government to increase the taxation on sugar beverages from ₦10 to ₦30.

The coalition representative, Edozie Chukwuma, made the call on Monday during a sit-out in Abuja to discourage consumption.

The federal government in 2021 introduced a Sugar-Sweetened Beverage (SSB) tax.

This is embedded in the Finance Act 2021, which levies a ₦10 tax on each litre of all non-alcoholic and sugar-sweetened carbonated drinks.

“We are basically asking the government, ministries of finance and health to protect the lives of Nigerians. Sugary drinks are very cheap and accessible, but the health implications of consuming these drinks are very deep,” stated Mr Chukwuma. “They actually cannot be taken on by the ordinary man, so our ask is basically that soft drinks are taxed. Currently, there is a N10 per litre tax on sugary drinks and we are asking that this tax is sustained in the Finance Act of 2023.”

He added, “We are asking that it should be increased to N30 per litre. It is recommended by the World Health Organisation that above 20 per cent tax on sugary drinks would see behavioural changes and reduction in the consumption. We are also saying that funds generated from taxing sugary drinks should be ploughed back into public health.”

The coalition representative said the treatment of non-communicable diseases was high, and ordinary Nigerians find it difficult to make out-of-pocket payments for medical bills and medications, pointing out that if the proceeds of the taxation are ploughed back into the health sector, the average man would be able to access proper.

“There is more value in using the revenue generated from the SSB tax than letting people consume soft drinks that basically provide no nutritional value to them,” Mr Chukwuma explained. “We believe that they would be able to utilise these funds and also appropriate them properly. We believe that if these taxes are first earmarked for health, it will help better lives.”

(NAN)

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