By Ezra Ukanwa, Abuja

In a move to address the growing concerns surrounding public health and the rising rates of obesity in the country, the National Action on Sugar Reduction (NASR), has demanded for inclusion in the fiscal policy and tax reform process. 

They observed that by allowing public participation, it would facilitate the monitoring of taxes, particularly on products that have been proven to be detrimental to health.

They argued that implementing policies that discourage the consumption of these drinks would not only improve public health but also generate substantial revenue for the government. 

They made this call in a letter, on Thursday, signed by the Co-Chair, National Action on Sugar Reduction Coalition and President, Nigerian Cancer Society, Dr. Alhassan Umar Adamu, to the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms Joint Tax Board Office, Mr Taiwo Oyedele.

They said the rise in Non-Communicable Diseases, NCDs, type 2 diabetes, cancer, and heart disease are putting a strain on the health system thereby forcing 77 per cent of Nigerians to cover healthcare costs out-of-pocket. 

They noted that the foregoing necessitated the call greater public health representation in the institution of tax reforms, especially regarding taxes on commodities with proven harmful effects to health. 

The letter partly reads: “The coalition welcomes the work of the Presidential Committee on Tax Reforms to harmonize and improve revenue collection efficiency. We further welcome the committee’s stated focus on achieving the Sustainable Development Goals and “reducing multidimensional poverty” in the

country. 

“As a group that is persuaded of the benefits that fiscal policies can deliver to improve wellbeing and advocates for fiscal policies along this line, we openly wish to express our involvement in the process. The prevalence of non-communicable diseases (NCDs) currently places a burden on the health system and drives individuals into poverty through prohibitive out- of-pocket treatment costs and lost productivity.

“Effectively, a failure to implement proper fiscal measures that address public health concerns is a greater tax on the public. We are interested parties. Our advocacy efforts contributed to the introduction of Nigeria’s first ever SSB tax. As a specific tax, the 10 naira per litre tax structure follows good practices by implementing a volumetric specific tax.

“However, the rate is too low to achieve the desired health and fiscal benefits such as reduced consumption of the harmful products and increase in public revenue for financing health and nutrition interventions. 

“Global evidence on fiscal policy surrounding SSB taxes in various countries continues to show why an increase in the current tax rate must be a national priority. The following are key submissions contained in the attached position paper: Nigeria is facing a health crisis: it is estimated that 11.2 million Nigerians, or one in every 17 adults, have type 2 diabetes, which is linked to SSB consumption. 

“Nigeria is a major consumer of SSBs, which are damaging to health. The rise in NCDs type 2 diabetes, cancer, and heart disease is putting a strain on the health system and forcing 77% of Nigerians to cover healthcare costs out-of-pocket. Increasing Nigeria’s SSB tax to at least 20% of the final retail price will have a positive influence on our public health, and revenue can be earmarked for programs that reduce the NCD burden. 

“The World Bank Global SSB Tax Database reports that SSB taxes have been effectively implemented in more than 100 countries and, contrary to the beverage industry’s narrative, there have been no records of economic or job losses as a result of SSB taxes. 

“It is for these reasons that the NASR coalition requests greater public health representation in the institution of tax reforms, especially regarding taxes on commodities with proven harmful effects to health. 

“We are writing to demand the inclusion of our coalition in this process to assure representation and fairness, given the powerful industry representation. Pro-health tax policies have a critical role in determining health outcomes, and we request that the Fiscal Policy and Tax Reforms Committee work in collaboration with public health organisations in formulating and reforming related tax policies. 

“In addition, the coalition also requests a meeting with you at your convenience to hold further discussions on the aforementioned issues. We would be pleased to receive a response indicating a preferred meeting time.”