Groups demand higher tax on tobacco firms in Africa to reduce production, consumption
Non-Governmental organisations, including the Civil Society Legislative Advocacy Centre (CISLAC) and Tax Justice Network Africa (TJNA) have urged governments in Africa to increase tax on tobacco firms operating in the continent in order to reduce production of the commodity for the health and economic well-being of Africans.
The groups made the call at the launch of a study report on Tobacco Industry and Illicit Financial Flows in Africa, held in Abuja, Nigeria.
The report was a study by the groups, which focuses on documenting the extent of the tobacco industry’s involvement in tax avoidance and evasion in the African continent to profile the leading tobacco companies in Africa, their subsidiaries, domicile and revenue trends.
It was also to document common tax avoidance and evasion strategies employed by the tobacco industry in Africa and to highlight common tax incentives and other forms of preferential treatment extended to tobacco companies and its subsidiaries between 2010-2021.
Executive Director, CISLAC, Mr. Auwal Musa Rafsanjani, said tobacco firms operating in Africa are doing more harm to the citizens and the economy, just as he called on African governments to put tobacco consumption under control and ensure regulations on tax are reviewed and applied to the multinational firms.
Also, the Executive Director,TJNA, Mr. Alvin Mosioma, noted that, the project brought together five organizations from Nigeria, Zambia, Senegal, Kenya, among other countries to ensure that “our African countries are putting in place the right tax policies to control the consumption of tobacco.”
“So the report we are launching today tries to do an analysis of the avenues that tobacco companies in Africa are using to reduce the tax that they pay to our government.”
“So when you look at tobacco discussions in the continent, there are two ways you can look at it, one is from the health perspective, trying to see how to ensure that the impact the consumption of tobacco has on health, particularly the healthcare system is put on check.” Mr. Mosioma added.
Also speaking, the President of ECOWAS Commission, Dr. Omar Alieu Touray, represented by the Tax advisor, ECOWAS, Mr. Lucia Ametchowou said, ECOWAS is committed to the regional harmonisation of tobacco taxation in consultation with the West African Health Organization (WAHO) and the Consortium for Economic and Social Research (CESR).
“With the establishment of an ECOWAS Common External Tariff, the West African region is taking another step towards the completion of the common market. Indeed, the unification and harmonization of customs duties and taxes of equivalent effect at the borders of our states provide an adequate platform for building the common trade policy of ECOWAS.”
Mr. Ametchowou said that Tobacco abuse, is responsible for more than six million deaths per year, and stressed the need to reduce it’s consumption in the most effective way.
Professor XN Iraki of University of Nairobi Kenya presented the tobacco report which suggested better implementation of tax policies by African governments to curb the excesses of Tobacco firms and Illicit Financial Flows in Africa.
The study, which aims to provide empirical knowledge to foster better understanding of the manipulative practices of the tobacco industry that maximize its profit margins, while shortchanging African countries is expected to serve as an advocacy tool for civil society and tobacco control community generally.
It will also serve as a guiding policy makers to proffer comprehensive policy strategies to mitigate illicit financial flows (IFFs) through the tobacco industry in Africa.
