The National Action on Sugar Reduction Coalition, represented by Nigeria Cancer Society and Project Pink Blue has paid a courtesy visit to Hon. Leke Abejide, Chairman House Committee on Customs and Excise.
The health group is advocating for an increase to the N10 per litre excise tax on sugar sweetened beverages, and stress that the tax should be maintained and increased to a level that will translate to real health gains in the form of reduced consumption.
During the visit, Hon Abejide affirmed that the beverage industry indeed came before the Senate and made claims that the tax is jeopardising their industry. The beverage industry has continuously attempted to influence policy decisions.
According to Hon Abejide, during the beverage industry’s visit to the Senate President, industry representatives were asked to name an example of a country where the industry has fallen into economic losses as a result of a sugar-sweetened beverage tax, but they could not mention one.
Interestingly, Abejide said they “shot themselves in the foot” by mentioning that Nigeria is one of the cheapest places in the world to buy soft drinks, which further indicates that the beverage industry is targeting the poor, leading them to buy more soft drinks. Meanwhile, Nigeria lacks the healthcare infrastructure to deal with the ensuing non-communicable diseases that result from sugary beverage consumption. Even children are presenting with early onset type 2 diabetes. By raising the taxes, it will reduce the number of people buying soft drinks and getting sick.
Hon Abejide said that by evading taxation, the beverage industry “has cheated us for so long” because the country has forfeited revenue that could have been earned from taxes. Meanwhile citizens have continued to drink sweetened beverages and contribute to the industry’s profit. He also presented an example from the alcohol industry, which recorded high profits even after taxation.
Hon. Abejide further stated that the taxes will create revenue to take care of the people the industry has “created problems for.” In closing, he strongly reassured the NASR that his committee is firmly behind the SSB tax, and reiterated that the tax is beneficial to Nigeria’s health and the future of the country.
He emphasised that the beverage industry must pay taxes, and there is no going back on it. Instead, Hon Abejide said, the tax rate should be increased.
