By Stellamaries Amuwa, Abuja
Taxation at appropriate levels will increase tobacco prices and reduce intensity of consumption, especially by the poor who bear a disproportionate burden of tobacco costs. High cigarette prices also act as discouragement for children and young people that are on the verge of taking to smoking and thereby reducing children and youth prevalence.
This was made known by the Executive Director, CISLAC, Auwal Ibrahim Musa (Rafsanjani) during the Annual Tobacco Tax Summit (TETSiM) and Launch of Tobacco Excise Tax Simulation Report for Nigeria held in Abuja.
Speaking during his remarks, Auwal Ibrahim Musa stated that the poor bears a disproportionate burden of tobacco costs. “High cigarette prices will also act as discouragement for children and young people that are on the verge of taking to smoking and thereby reducing children and youth prevalence.
“It gives me great pleasure to welcome all of us on behalf of the Management and Board of Civil Society Legislative Advocacy Centre (CISLAC) to this important gathering of the Annual Tobacco Tax Summit and Launch of Tobacco Excise Tax Simulation Report for Nigeria. Consumption taxes on luxury and harmful products like tobacco and alcohol are not just taxes applied for the sole purpose of revenue generation. Rather these taxes are applied to discourage consumption and thereby safeguarding the health of citizens. It is in this understanding that economists refer to these types of taxes as sin-taxes.
“According to the World Health Organization (WHO), the tobacco epidemic is one of the biggest public health threats the world has ever faced. It is responsible for over 7 million deaths annually as well as disability and long-term suffering from tobacco-related diseases. WHO also notes that all forms of tobacco use are harmful, and there is no safe level of exposure to tobacco. While cigarette smoking is the most common form of tobacco use worldwide, tobacco use comes in different forms with the tobacco industry inclined to promoting new generation products in recent times.
“One of the critical conversations in tobacco control discussion is the reduction of affordability of tobacco products. Reducing tobacco consumption can come through a variety of policies such as a ban on advertising of tobacco products, education, and providing remedies for cessations, among other measures. However, tobacco taxation, which has been described as the single most effective tobacco control measure, remains the most cost-effective tool for reduced affordability and discouraging consumption.
“Taxation at appropriate levels will increase tobacco prices and reduce intensity of consumption, especially by the poor who bear a disproportionate burden of tobacco costs. High cigarette prices also act as discouragement for children and young people that are on the verge of taking to smoking and thereby reducing children and youth prevalence.
While Nigeria has made significant progress since 2018 when it first adopted the mixed excise tax system for cigarettes, the country is still far from meeting the ECOWAS and WHO recommended level of tobacco taxation when countries like Senegal and Ghana are already on the verge of reaching this benchmark in terms of tobacco taxation.
“These are the critical conversation that Nigeria must have to ensure that the tobacco tax rates in the country matches and possibly surpasses the rates adopted by sister countries of the West African region. It is in this understanding that CISLAC has convened this summit today, with the objective of stimulating a wider stakeholders conversation that ultimately contributes to an effective tobacco tax regime in Nigeria.
“As part of efforts to ensuring this advocacy is driven from an evidence-based approach, CISLAC in partnership with the Research Unit on the Economics of Excisable Products of the University of Cape Town and Tax Justice Network Africa validated a Tobacco Excise Tax Simulation report for Nigeria here in Abuja some weeks ago. Today, we are also looking to formerly launch that report as part of the deliverables of this summit. For us, this is crucial in contributing to the ongoing efforts for the review of the tobacco excise tax regime in Nigeria.
“We are sincerely appreciative of the partners that have strengthened our advocacy over the years, particularly, the Federal Ministry of Finance, Federal Ministry of Health, The Federal Inland Revenue Service, The Nigerian Custom Service and the entire membership of the Tobacco Tax Technical Working Group. We are also appreciative of our development partners including Tax Justice Network Africa, African Capacity Building Foundation, Campaign for Tobacco Free Kids. We recognize the research and data contribution efforts of Development Gateway and the Centre for the Studies of Economies of Africa and of course the University of Cape Town for providing evidence for advocacy and policy formulation.
It is our hope that this summit will further catalyze efforts for a comprehensive and effective tobacco tax regime in Nigeria.
Meanwhile, they were representatives of Government Ministries, Departments and Agencies, Representatives of the National Assembly, Representatives of the Diplomatic Community and Development Partners, Members of the Civil Society. The Academia and Research Partners, were all at the event.
