Taxes on sugary drinks will help poor Nigerians — Coalition

The National Action on Sugar Reduction (NASR) Coalition has said that taxes on Sugar Sweetened Beverages (SSB) and alcoholic drinks will help poor indigent Nigerians.

Dr Alhassan Umar, the Co-Chairman of NASR, reiterated the stance of the coalition, in a statement he signed and made available to newsmen in Abuja on Saturday.

The NASR coalition had constantly said that huge taxes on SSB products and alcohol would discourage Nigerians from buying such products.
It had constantly said that huge taxes on SSB and alcoholic drink, apart from discouraging Nigerians from buying, it would reduce the burden of diabetes, hypertension and other Non-communicable diseases associated with the taking of sweet things.

The statement also said that the Presidential Fiscal Policy and Tax Reforms Committee had recently convened a stakeholder meeting with trade associations, CSOs, NGOs to discuss pathways for tax reforms that would boost economic growth in Nigeria.

The statement reported the committee’s chairman, Taiwo Oyedele, as saying in the meeting that the committee aimed to reduce the tax burden on Nigerians by primarily taxing the wealthiest one per cent of the population, rather than enacting any new taxes.

According to him, this is more effective and will ultimately result in more revenue. The statement reported Oyedele as saying at the meeting that nations that enacted similar tax policies have seen higher rates of economic expansion and revenue.

He restated the committee’s commitment to identify locally developed solutions that were appropriate for the job at hand. The committee’s chairman further stated that the fiscal policy and tax reforms committee is dedicated to enhancing confidence in government and transparency with the Nigerian people.

The statement also reported Mr Runcie Chidebe, a member of NASR coalition and the Executive Director of Project Pink Blue (PPB), saying sugary drink taxes were essential to alleviate the burden on the poor.

According to Chidebe, “the SSB tax is not a tax on the poor, it is a tax on products that are harmful to health, and thus a pro-health fiscal policy.
He said it would directly protect the poor by deterring their consumption of sugary drinks and reducing their risk of serious diseases.

“I am concerned on why we should not tax the poor; we must take tax policy steps to protect the vulnerable.
“Many of the poor have lower socioeconomic status and they are more prone to consume SSB, processed foods that place them at a higher risk of diabetes and other non-communicable diseases.

”The NASR coalition contends that not implementing the SSB tax is counterproductive to public and preventive health practices, especially since there is evidence that implementing SSB taxes results in a healthier population,” Chidebe said.

The News Agency of Nigeria (NAN) reports that the World Health Organisation (WHO) recently issued a report recommending higher sugary drink taxes, to create healthier food environments and prevent non-communicable diseases and deaths.

NAN reports that the NASR coalition has advised that sugary drink tax revenue be targeted for health coverage, which will support the country’s goals of achieving universal health care.