By Modupe Gbadeyanka
A foremost economic analyst, Teslim Shitta-Bay, has knocked the federal government for saying its proposed plan to impose an additional 20 per cent ad-valorem excise tax on carbonated soft drinks was to control the consumption of sugar in the country.
About two weeks ago, the soft drinks group of the Manufacturers Association of Nigeria (MAN) alleged that the government was planning to generate more funds from the sectorial group.
A few days ago, an organisation known as the National Action on Sugar Reduction held a peaceful demonstration in Abuja urging the government to increase taxes on sugary drinks and invest the revenue into public health.
But Mr Shitta-Bay noted that raising taxes cannot be used to solve the health problems associated with sugar consumption, stressing that similar actions taken by the government in the past have left the country’s health sector in a mess.
According to him, controlling sugar consumption is essential but raising taxes is not the solution.
He submitted that the best way to control sugar consumption is by setting and enforcing regulations around the amount of sugar used in carbonated drinks.
In addition, a social awareness programme explaining the consequences of excessive sugar consumption should be made with messages placed on non-alcoholic carbonated drink bottles, like the country’s Chief Medical Officer’s warning on a cigarette pack, he said.
Mr Shitta-Bay, drawing a similar parallel with the tobacco sector case, stated that the sector also suffered a similar fate.
He disclosed that the regulatory position was such that advertising of tobacco was banned. Meanwhile, the effects of that were that the smokers migrated to other unregulated substances and drugs, including tramadol and sundry substances.
“Yes, the health issue can be connected to economic development, but in this case, there is no justification to use health to rationalise simply because the carbonated soft drinks sector has not violated the regulations,” he said.
Also commenting, the sectorial group of MAN accused the federal government of using emotional blackmail to justify its proposed tax.
In a statement made available to Business Post, the group said it was surprised that the government was calling a dog a bad name to hang it.
It stated that it was wrong for the federal government to allegedly sponsor a faceless group to stage a protest in its support, claiming that sugar was the cause of stroke, type 2 diabetes, heart diseases, and cancers.
“Citizens’ health is a significant responsibility of all governments, and any action to protect citizens’ health is desirable and should be supported. But the false attribution of sugar-related ailments to a single cause or product is wrong,” the group stated.
Adedapo Adesanya