Big soda companies undermine global sweetened beverage taxes to protect profits, report reveals 

NIGERIA – A report by the Global Health Advocacy Incubator (GHAI) reveals that large soda companies are actively influencing sweetened beverage (SB) policies worldwide to protect their profits, undermining public health and good governance.  

The GHAI report claims that soda companies frequently counter government policies designed to reduce unhealthy sugar consumption by making economic arguments, such as threats of job losses, reduced investments, and impacts on economic development.  

However, the report asserts that these claims are largely baseless and are aimed at minimizing public support for SB taxes. 

The report identifies the soda industry’s tactics in various countries, including Nigeria, Ghana, and South Africa, where it has successfully lobbied against or weakened SB taxes.  

These strategies include proposing reduced tax rates and shifting the discussion to emphasize their role in national economic stability and development.  

For instance, in Nigeria, the Manufacturers Association of Nigeria (MAN) has opposed the proposed increase in SB taxes, arguing that such a move would worsen inflation, reduce consumer purchasing power, lead to factory closures, and cause job losses. 

Lorene Vara, senior advocacy advisor at GHAI, explained that the industry has adopted a more subtle approach, preferring to propose weaker taxes rather than outright opposition.  

She noted that the industry aims to appear cooperative by suggesting that they support health policies, while behind the scenes, they push for lower tax rates and influence national nutritional guidelines to favor their products.  

According to Vara, these strategies are particularly evident in Nigeria and Ghana, where industry influence has extended to modifying nutritional guidelines to suit their objectives. 

In Nigeria, the government introduced a N10-per-litre excise duty on sweetened beverages under the 2021 Finance Act. However, the soda industry has persistently opposed this tax, calling for its repeal.  

Oluwafemi Akinbode, executive director of Corporate Accountability and Public Participation Africa (CAPPA), noted that the industry’s arguments often rely on scaremongering tactics, claiming the tax would impoverish citizens.  

Despite rising beverage prices and a significant reduction in the tax’s impact due to inflation, Akinbode asserted that industry opposition remains strong. 

South Africa also faces industry pushback, with the Beverage Association of South Africa (BevSA) claiming that the SB tax introduced in 2018 could affect up to 72,000 jobs, 10,000 small businesses, and potentially reduce GDP.  

Although civil society groups have urged the government to raise SB taxes to help curb non-communicable diseases, BevSA’s influence has led to a two-year freeze on tax rate increases. 

In Ghana, the Food and Beverage Association has also pressured the government to reduce beverage taxes to boost exports.  

The GHAI report concludes that soda companies’ opposition to SB taxes globally is strategically aimed at maintaining profits, with little consideration for public health outcomes. 

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