The National Action on Sugar Reduction Coalition (NASR) has called for public health participation in president Bola Ahmed Tinubu’s proposed tax reforms.
The NASR coalition, a group of health organizations advocating for policy measures to curtail the consumption of sugar-sweetened beverages (SSBs) made this known at a meeting held in Abuja.
The Coalition’s request came in response to a recent statement by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, that the government has no plans to introduce new taxes or impose higher tax rates.
Speaking at the meeting, Dr Mohammed Alkali, President of the Diabetes Association of Nigeria, commended the government’s objective to enhance revenue collection and promote the efficient use of tax revenue.
“the SSB tax, which has been introduced in many countries globally, has proven to have both health and economic benefits. The increased cost of the commodities is expected to discourage consumption, hence reducing the risk of None Communicable Diseases and reducing complications. Nigeria’s 10 naira per liter SSB tax will make a deeper health impact if the rate is sufficiently increased to a level that will discourage purchase, while generating significant revenue.”
Responding to the Fiscal Reforms Committee’s plans to halt the introduction of new taxes and impose no higher tax rates, the Coalition asserted that there should be greater public health representation in the institution of tax reforms, especially sin taxes, which are imposed on commodities that affect health.
In further reaction to this, Gloria Okwu of Project PinkBlue said, “It is important for public health voices to have a seat at the table when tax policy reforms are being considered.” Coalition members stressed that pro-health tax policies have an important bearing on health outcomes, and the Fiscal Policy and Tax Reforms Committee should work in collaboration with public health organizations in formulating tax policies.
At the meeting, it was emphasized that the revenue prospects of SSB taxes are enormous. The taxes have the potential to generate at least N300bn in revenue if increased to a level that raises SSB prices by at least 20% of the final retail price. Revenue from pro-health taxes can be used to cover healthcare expenses for people living with NCDs. Dr Alkali further maintained that “tax funds need to be channeled towards NCDs prevention and treatment in the country.”
The Coalition expressed concerns that the SSB tax, currently enacted through the Finance Act, remains vulnerable to interference and called for the more efficient implementation of SSB taxes through legislation.
The key coalition demands to the government are: Increase the SSB tax rate to a level that discourages consumption while generating government revenue. This should be no less than a rate that increases retail prices by 20% Introduce a draft SSB tax bill that includes provisions for earmarking tax revenue for healthcare include public health organizations in the fiscal policy reform process.