Federal Government Imposes N10 Tax Per Litre on Soft Drinks

Category: Nigeria News

The federal government has announced an additional N10 sugar tax on each litre of all non-alcoholic, carbonated and sweetened beverages. The new tax law is contained in the government’s 2021 Finance Act.

According to the Act, the excise duty of N10/litre imposed on all nonalcoholic, carbonated and sweetened beverages was to discourage excessive consumption of sugar in beverages which contributes to diabetes and obesity, among others.

Ahmed said the new ‘Sugar Tax’ was introduced to raise excise duties and revenues for health-related and other critical expenditures.

The affected products include Coca-Cola, Pepsi, Sprite and other sweetened beverages that are associated with excess sugar-related illnesses like obesity and diabetes.

According to reports, about four million Nigerians suffer from diabetes linked to excess sugar consumption.

The government considers the new measure as one of its 2022 budget priorities that will help to raise more revenue for health-related and other critical expenditures.

“The 2022 budget seeks to continue the reflationary policies of the 2020 and 2021 Budgets, which helped put the economy back on the path of recovery and growth,” minister of Finance, Budget and National Planning, Zainab Ahmed said yesterday during a breakdown of the 2022 budget in Abuja.

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