The Nigeria Cancer Society (NCS) has described the claims by the Manufacturers Association of Nigeria (MAN) that sugar sweetened beverages (SSBs) tax will lead to economic losses as unfounded. According to a statement signed by Dr. Adamu Umar, President of the NCS and co-chair of the of the National Action for Sugar Reduction Coalition (NASR), it stated that MAN has recently made claims that the 10 naira per litre excise tax, enacted through the 2021 Finance Act, will “kill” the beverage sector. It stated that MAN also claimed that the N10 per litre excise tax is “already having devastating effects” on consumers.
The NCS, therefore, stressed that there is no evidence that the N10/litre tax has had any such effects on the industry. On the contrary, it noted that the N10 per litre tax is not sufficient to reduce consumption and consequently, the devastating diseases that result. “The National Action on Sugar Reduction coalition maintains that the current SSB tax rate must be raised in line with the good intentions of the government in order to achieve a significant impact on SSB consumption patterns and, ultimately, a decline in NCDs. Sugar sweetened beverages are loaded with refined sugars and contain very little or no nutritional value. Consuming them raises the risk of chronic illnesses like type 2 diabetes, high blood pressure and stroke and even cancers. These diseases are very expensive to treat, with humongous financial costs that weigh most heavily on low-income families.
“The SSB tax is designed to reduce consumption of these harmful products, and ultimately prevent non-communicable diseases. Increasing SSB taxes will improve the health impact of taxation. Beverage industry arguments are unfounded, as indicated by the evidence from countries like South Africa, Mexico and the Philippines, where SSB taxes have been implemented. SSB taxes have not led to job losses and the industry continues to generate profits. SSBs, however, continue to increase the risk of chronic diseases that financially burden families and distress health systems.
“SSB taxes can improve health by leading consumers to buy less and lowering the risk of non-communicable diseases. It has been scientifically proven that the global burden of NCDs has been on the increase. A key risk factor for NCDs is obesity, which has a direct link to sugar sweetened beverage consumption. Hence an appropriate tax rate on SSBs is an attractive measure to curb the rising trends of NCDs. Furthermore, if tax revenue is invested, it can relieve the overburdened health system and reduce healthcare costs.”