ThinkBusiness Africa, an economic analysis and policy advocacy group, has raised concerns regarding the assertions made by the Corporate Accountability and Public Participation Africa (CAPPA) report on the impact of an increase in Sugar Sweetened Beverages (SSB) Tax in Nigeria.
In their latest report titled ‘ThinkBusiness Africa Insight Series April 2024: CAPPA, Sugar Sweetened Beverages Tax, and Fiscal Policy in Nigeria,’ ThinkBusiness Africa challenges the basis of CAPPA’s claim that raising the SSB tax would reduce Nigerians’ body mass index within five years.
According to ThinkBusiness Africa, the assertion by CAPPA is flawed and lacks sufficient evidence to establish causation between an increase in SSB tax and reduced body mass index. They argue that implementing such a tax hike would not achieve the desired results but rather burden Nigerians and negatively impact the business climate in the non-alcoholic drinks sector.
Dr. Ogho Okiti, the Chief Executive Officer of ThinkBusiness Africa cautioned against using taxation measures assuming causation without solid evidence, as it could impose heavy tax burdens on the food and beverage sector, which already faces significant taxation challenges.
Source: Punch