Nigerians to Pay More On Carbonated Drinks from July

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CEM REPORT | The Federal Government has stated that the N10 per litre sugar tax on carbonated sugar drinks and beverages collection has commenced.

The Federal Government through the Nigerian Customs Service (NCS), mentioned that the implementation commenced June 1 and collection will by July 21.

This is according to Chief Superintendent of Customs, Department of Excise, Free Trade Zone and Industrial Incentives, Dennis Ituma, at a Policy Breakfast Meeting in Abuja, organised by the National Action on Sugar Reduction to proffer ways to implement tax and other interventions to reduce Sugar-Sweetened Beverages (SSBs) consumption in Nigeria.

He added that as against popular notation, SSBs taxation was not new to Nigerian law added that it was in fact stopped in 2009.

He further stated that the new collection will increase federal government revenue.

The N10 per litre of Sugar-Sweetened Beverages has been implemented on June 1, by July 21, all excise duties must have been collected and paid into the federation account.

“It should interest you that taxation on SSBs was a policy of the Federal Government in 1984 but was stopped in January 2009.

“Previously both SSBs, alcoholic drinks and tobacco were all taxed until 2009 when SSBs was removed from taxable beverages.

“Only alcoholic drinks and tobacco generates N414 billion, SSBs will further increase the revenue generated from drinks,”

On collect method, the Chief Superintendent said Customs Service designates resident customs officers to all factories producing SSBs who take the measurements of all daily productions.

Mr Musa Umar, a representative of the Federal Ministry of Finance Budget and National Planning said it was important to get those at the high level of policy-making involved in the advocacy to get their commitment to channel the funds from the tax to health issues that resulted out of the excessive consumption of SSBs according to a NAN report.

Recall that CEM, reported that Federal Government introduced a new policy, sweetened and non-alcoholic beverages (Sugar Tax) into the Finance Act, which will see an excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages in the country.

President Muhammadu Buhari signed the policy into law on December 31, 2021, alongside the 2022 Appropriation Bill.

Although, Manufacturers Association of Nigeria has since kicked against the policy saying excise may not be justified in the long run.

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