The Lagos Chamber of Commerce and Industry (LCCI) has expressed concerns on the recent passage of the Sugar-Sweetened Beverage (SSB) Tax Bill by the Senate, arguing the action could have unintended consequences across the industrial value chain.

The chamber, in a statement issued by its Director General, Dr Chinyere Almona, on Monday, noted that the beverage industry supports a wide network of suppliers, distributors, transport operators, retailers, farmers, and service providers, and, as a result, any decline in production volumes resulting from increased taxation may negatively affect these interconnected sectors, leading to reduced investments, lower capacity utilization, and potential job losses.

It noted that while the objective of the government is to address public health concerns associated with excessive sugar consumption, it however expressed concerns about the potential economic consequences of imposing additional taxes on an already challenged manufacturing sector.

The chamber, called for a more balanced approach that combines public health education, voluntary industry reformulation initiatives, improved product labeling, consumer awareness campaigns, and broader stakeholder engagement.

Such measures, the LCCI added, would help achieve health objectives while minimizing adverse effects on industrial growth and employment.

It also stressed the need to design sugar-sweetened beverage taxes that will be part of a broader public health strategy and carefully calibrated to avoid excessive disruption to industry and employment.

“Policymakers must carefully assess impacts on agriculture, manufacturing, and supply chains before implementation, especially where industries support large numbers of jobs,” it added.

The chamber urged the Federal Government and the National Assembly to undertake a redesign exercise, through more technical engagement with manufacturers, health experts, organized private-sector groups, consumer associations, and other stakeholders to birth a tax policy that drives product reformulation that preserves sales and jobs.

“At a time when manufacturers are grappling with high energy costs, exchange rate volatility, elevated interest rates, logistics challenges, multiple taxation, and weak consumer purchasing power, the introduction of additional taxes on the beverage industry risks further increasing production costs. These higher costs are likely to be passed on to consumers through higher prices, worsening inflationary pressures, and reduced demand for locally manufactured products,” it added.

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