The National Action on Sugar Reduction Coalition (NASR) is calling for increased collaboration across multiple sectors to support the government’s proposed tax reforms. This call comes in response to a recent statement by Chairman Taiwo Oyedele of the Presidential Committee on Fiscal Policy and Tax Reforms, where he stated that the government had no plans to introduce new taxes or raise existing tax rates.
However, NASR, in a communique issued after their meeting in Abuja on Tuesday, is urging the government to raise the tax on sugar-sweetened beverages (SSB) by at least 20% to discourage consumption and generate additional government revenue. The coalition also recommends introducing a draft SSB tax bill that includes provisions for earmarking tax revenue for healthcare and involving public health organizations in the fiscal policy reform process.
The communique, shared by NASR representative Omei Bongos-Ikwue, is signed by various coalition members, including the Diabetes Association of Nigeria, Nigeria Health Watch, TalkHealth9ja, Project Pink Blue, Nutrition Society of Nigeria, Nigeria Cancer Society, ONE Campaign, Bundies Care Initiative, University of Abuja Teaching Hospital/Mark Anumah Medical Mission Centre, and the Centre for Media and Dialogue Initiative.
Dr. Mohammed Alkali, President of the Diabetes Association of Nigeria, commended the government’s efforts to enhance revenue collection and ensure efficient use of tax revenue. He emphasized that SSB taxes, implemented in many countries globally, have demonstrated both health and economic benefits. He suggested that increasing the tax rate on SSBs in Nigeria would have a more significant health impact by discouraging purchases while generating substantial revenue.
A representative of Project Pink Blue emphasized the importance of involving public health voices in the consideration of tax policy reforms.
NASR stressed that pro-health tax policies significantly impact health outcomes and called for collaboration between the Fiscal Policy and Tax Reforms Committee and public health organizations in formulating tax policies. They highlighted the potential for SSB taxes to generate substantial revenue, estimating at least N300 billion if the tax is increased to raise SSB prices by at least 20% of the final retail price.
The coalition expressed concerns about the vulnerability of the current SSB tax, enacted through the Finance Act, to interference and advocated for more efficient implementation through legislation.
In response to the Fiscal Reforms Committee’s plans to avoid introducing new taxes or raising tax rates, NASR emphasized the need for greater public health representation in tax reform decisions, especially concerning commodities affecting health. They proposed using revenue from pro-health taxes to cover healthcare expenses for individuals with non-communicable diseases (NCDs) and prevention and treatment of NCDs in the country.
The NASR coalition comprises health organizations advocating for policy measures to reduce the consumption of sugar-sweetened beverages, which are linked to non-communicable diseases such as type 2 diabetes, cancer, and hypertension.
