Sugar-sweetened beverages (SSB) taxes have emerged as a critical public health policy tool, although their optimal design remains under debate compared to established tobacco and alcohol taxes.
Nevertheless, there’s a growing global interest among policymakers regarding SSB taxes for their potential to enhance population health and generate revenue, leading to a rapid increase in the adoption of SSB tax policies worldwide.
Currently, sugary beverage taxes are enforced in 106 countries and territories, encompassing 52% of the world’s population. These taxes not only contribute to improved health outcomes but also bolster revenue streams, particularly in low and lower-middle-income economies.
The tax on sugar-sweetened beverages in Nigeria
The Nigerian Federal Government implemented a tax of N10 ($0.0081) per liter on sugar-sweetened beverages as part of the 2021 Finance Act. However, this tax falls below the recommendations of the World Health Organization (WHO), according to the National Action on Sugar Reduction.
Nigeria, being one of the largest consumers of soft drinks in Africa, faces a significant health challenge, with 3.6 million Nigerians suffering from type 2 diabetes. In response, a coalition advocating for sugar reduction has urged the government to raise the tax on sugar-sweetened beverages.
Dr. Chukwuma Anyaike, director of the public health department at the Federal Ministry of Health and Social Welfare, has stated that the federal government aims to implement a 20% tax on sugar-sweetened beverages.
Methodology
To compile this ranking, Nairametrics utilized the Global SSB Tax Database provided by the World Bank. This database serves as an open-source repository of information on SSB tax structures globally, aimed at supporting research, influencing policy decisions, and facilitating the development of best practices in SSB taxation.
Here are the top 10 African countries with the highest tax rates on sugar-sweetened beverages.
- Benin
In Benin Republic, a 20% tax is levied on energy drinks, imported fruit juices, and mineral waters, with a 7% tax applied to all other non-alcoholic beverages, except non-carbonated mineral water.
- Côte D’Ivoire
All sugar-sweetened beverages in Côte D’Ivoire are subject to a 20% tax.
- Ghana
A 20% tax is imposed on aerated waters containing added sugar or other sweetening agents, energy drinks, and fruit juices in Ghana. Additionally, plain distilled bottled water incurs a 17.5% tax.
- Zimbabwe
In Zimbabwe, a 25% tax is enforced on carbonated unsweetened waters, along with a $0.05 per liter tax on energy drinks.
- Cameroon
Cameroon imposes a 25% tax on carbonated beverages, with an additional excise duty charge of 2.5 CFA francs per centiliter ($0.4125 per liter) on imported non-alcoholic beverages.
- Ethiopia
Sugar-sweetened beverages, soft drink powders, and non-alcoholic beer in Ethiopia face a 25% tax, while unsweetened waters are taxed at 10%.
- Tunisia
Tunisia applies a 25% tax on sugar-sweetened beverages, a 10% tax on cocoa-based preparations, and a 40% tax on concentrates.
- Rwanda
Rwanda has implemented a 39% tax on lemonade, soda, and other non-natural juices, along with a 10% tax on industrially packaged mineral water, and a 5% tax on natural fruit and vegetable juices.
- Burkina Faso
In Burkina Faso, energy drinks are subjected to a 50% tax, while other sugar-sweetened beverages face a 15% tax.
- Mauritania
Taking the top spot for the African country with the highest SSB tax, Mauritania imposes an 80% tax on mineral waters and a 60% tax on yogurt and other sweetened dairy products.
