Prices as soft drinks may rise, as govt slams N10 per liter duty
The Federal Government has introduced an excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages produced in Nigeria.
Excise duty is a tax imposed on the production, licensing and sale of goods. With the policy, the prices of carbonated drinks may spike across the country.
Minister of Finance, Budget and National Planning, Zainab Ahmed, during the public presentation of the 2022 Appropriation Act in Abuja said the new policy introduced is contained in the Finance Act signed into law by President Muhammadu Buhari on December 31, 2021.
Apart from the new ‘Sugar Tax’ in section 17 of the new law, Ahmed said the 2021 Finance Act also raised excise duties and revenues for the health sector.
The Minister said the excise duty on soft drinks would discourage excessive consumption of sugar beverages, which contribute to diabetes, obesity among others.
“There’s now an excise duty of N10/ per litre imposed on all non-alcoholic and sweetened beverages. And this is to discourage excessive consumption of sugar in beverages which contributes to a number of health conditions including diabetes and obesity. But also used to raise excise duties and revenues for health-related and other critical expenditures. This is in line also with the 2022 budget priorities,” the Minister said.
