The federal government has introduced an excise duty of N10
per litre on all non-alcoholic, carbonated and sweetened beverages.
Excise duty is a form of tax imposed on the production,
licensing and sale of goods.
Zainab Ahmed, minister of finance, budget and national
planning, said this during the public presentation of the 2022 Appropriation
Act on Wednesday in Abuja.
According to her, the new policy introduced is in the Finance Act signed into law by President Muhammadu Buhari on December 31, 2021.
In 2019, Zainab Ahmed, the minister of finance, had
announced that the government may introduce excise duty on carbonated drinks.
In 2020, Hameed Ali, comptroller-general of the Nigeria
Customs Service (NCS), had proposed the collection of excise duty on soft
drinks.
He had also put forward the same proposal in 2021 at an
interactive session on the 2022-2024 medium-term expenditure framework (MTEF),
organised by the house of representatives committee on finance.
Apart from the new ‘Sugar Tax’ in section 17, 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 contributes to diabetes, obesity among others.
“There’s now an excise duty of N10/ per litre imposed on all
non-alcoholic and sweetened beverages,” she said.
“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.”
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