MAN, NACCIMA, NESG want govt to halt planned rise in SSB tax over poor economy
By Felicia Nwosu
Major stakeholders in the Food & Beverages sector have urged the Federal Government to halt its plan to raise the current Sugar-Sweetened Beverage (SSB) Tax rate from N10 per litre to N30 per litre.
The stakeholders include Manufacturers Association of Nigeria, MAN, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigeria Economic Summit Group (NESG).
They noted that the manufacturing sector is the sole of the economy and urged the government to put a halt to the move to avoid putting more pressure on manufacturers who are already undergoing economic extreme pressure.
The bodies while expressing their support towards beverage producers, urged the Federal government to ignore the ongoing advocacy by the Corporate Accountability and Public Participation Group (CAPPA) championing an increase of the current Sugar-Sweetened (SSB) Tax rate from N10 per litre to a minimum of N30 per litre.
In their submission,the groups which cut across diverse industries, maintained that such a move will have a negative ripple effect and would amount to straining the Food & Beverage Sector of the Nigerian economy which they described as “the vital economic pillar.”
The leading sectoral groups concluded that a balanced approach to taxation, taking into consideration the unique challenges of this sector, was essential to ensure its continued growth and contribution to the nation’s GDP.
“Striking the right balance between tax revenue generation and economic sustainability will be pivotal in preserving this vital economic pillar while fostering growth and innovation in the industry”, they said.
According to CAPPA, the move was propelled by the growing concerns over the rising cases of Non-Communicable Diseases (NCDS) in Nigeria.
In view of this health concerns, CAPPA called for the adoption of the most effective evidence-based rate and implementation regime that reduces consumption by increasing the tax coverage.
The sectoral groups, while reviewing the ongoing conversation bothering on the SSB Tax tax increment, reminded the government of the crucial role of the manufacturing sector to the global economy , noting its contribution which has grown in value and relevance.
They also cited a relevant quote from data from the World Trade Organisation (WTO),noting the food and beverage sector is estimated to contribute 22.5 per cent of the manufacturing industry value, generating an estimated 1.5 million jobs and 4.6 per cent of the country’s Gross Domestic Product (GDP).
According to Ajayi Kadiri, the Director-General of the Manufacturers Association of Nigeria (MAN), “the Food and Beverage sector encompasses a wide range of businesses, including restaurants, cafes, food producers, and beverage manufacturers. It provides employment opportunities, contributes to exports, and plays a pivotal role in stimulating economic growth. Beyond its economic value, this industry forms the very fabric of our daily lives, shaping our culture and social interactions.”
They further expressed worry over the incessant economic floatation in recent years and how the food and beverage sector has been grappling with excessive taxation, which is gradually eroding its contribution to the nation’s GDP.
The groups observed that the recent calls for increase in Sugar Sweetened Beverage Tax poses a potential threat to the operations of this most important sector of the Nigerian economy.
RECOMMENDED ARTICLES
Comment
No comments found.