Sin Tax has over the years been perceived as a phenomenon majorly obtainable in first-world countries. Contrary to this assertion, the World Health Organization, WHO in a recent report has recommended that Africa must rise to the occasion by commencing the implementation of taxes and levies on sin items.
This time, the WHO in an environmentally conscious approach wants the government of African countries to impose taxes and levies on tobaccos across the value and supply chain. In specificity, this tax is proposed to span; Production, Processing, Distribution, Sales, Consumption and waste management.
The call by WHO is coming in the spirit of celebrating this year’s May 31st World No Tobacco Day, raising awareness of the environmental, social, and economic challenges posed by the indiscriminate use of Tobacco.
Beyond the tax solution to curbing the medical threat of Tobacco, the WHO stated that the trend of tobacco is a double tragedy as farmers of this substance make use of a high volume of water which is already a scarce resource across the African continent.
Also, the specialized agency of the United Nations pointed out that planting tobacco has contributed to the large-scale deforestation and contamination of the air and waterways experienced in the continent.
Taxmobile.Online deduced from the statement of WHO’s Regional Director for Africa, Dr. Matshidiso Moeti that in line with this year’s them, “Tobacco: Threat to our environment”, the government of African countries must take a serious look at tackling this menace, adopting taxation and levy as a viable option.
Putting money where its mouth is, the WHO further reinstates its commitment to helping farmers get involved in planting alternative crops with no or less environmental impact than with the entire tobacco cycle, from cultivation, production and distribution, to the toxic waste it generates.
It is worthy of note that WHO estimates that one in every 10 African adolescents use tobacco while the UN asserts that Tobacco kills one-third to one-half of all people who use it, on average of 15 years prematurely.
Continental Efforts So far
With 44 existing WHO African Region and 47 countries ratifying the WHO Framework, 24 African countries have so far instituted bans on smoking in public places while 35 African countries in total had banned tobacco advertising, promotion and sponsorship.
A WHO’s recent study revealed that the issue of tobacco consumption is fast becoming a major issue that requires prompt attention. This is compounded by the emergence of products like electronic nicotine and tobacco products are fast becoming attractive to youths.
In 2021 as a measure to curb the spread of Corona Virus, South Africa through its Finance Minister; Tito Mboweni, announced an increase of 8% in excise duties on alcohol and tobacco products to discourage their consumption and promote good public health.
Also earlier this year, the Nigerian government implemented a ₦10 per litre excise duty on all non-alcoholic, carbonated and sweetened beverages. The new sugar tax hinted by the government was introduced to raise excise duties and revenues for health-related and other critical expenditures in line with the 2022 budget priorities.
This move by the above-mentioned African nations connotes the partial introduction of the Sin Tax which will not only lead to a drastic decline in the consumption of potentially harmful goods, especially Sugar-Sweetened Beverages, (SSBs) but lead to an increase in government revenue and general improvement of health across the board.
The Concept of Sin Tax
Sin taxes represents tax placed on items perceived to be of harmful consequences to society. Products levied the sin tax include tobacco products, alcohol, cigarettes, gambling ventures, and goods that are considered morally hazardous.
