FG Moves to Increase Tax on Carbonated Drinks, Manufacturers Kick
- The Nigerian government has increased the Sugar Tax imposed on soft drinks and beverages in Nigeria
- The Nigerian government said the reason is to reduce the consumption of sugary beverages across the country
- The Manufacturers Association of Nigeria (MAN) has kicked against the addition of 20 per cent on soft drinks
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The recently proposed increase of tax on soft drinks has generated heated controversy as the Manufacturers Association of Nigeria (MAN) insists that the new tax coming after the N10 per litre is against businesses.
In the 2021 Finance Act, the federal government introduced an excise duty called Sugar Tax.
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FG gives reason for Sugar Tax
Minister of Finance, Budget and National Planning, Zainab Ahmed explained that the tax on soft drinks would discourage excessive sugar consumption which contributes to diabetes, obesity and other sugar-related ailments.
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Per the Daily Trust report, the sectoral arm of the Manufacturers Association of Nigeria (MAN) raised the alarm the new tax burden of an additional 20 per cent tax will compound the woes of manufacturers.
According to the manufacturers, the N10 per litre tax is also destroying their businesses and rejecting the proposed new tax.
The group said that a recent study showed that the N10 per litre tax caused an 8 per cent decline in revenue for the manufacturers.
Manufacturers angry, kick against move
They said the study showed that the decline will hit 25 per cent soon. This excludes the cost of write-offs of products already produced and excised but not sold.
The group criticised the effects of the N10 per litre tax which they said the tax is already burdening them cause of the high cost of operation in the country.
The manufacturers called for the suspension of the new proposed tax by the federal government to prevent the collapse of the industry.
MAN rejected the Nigerian government using sugar as an excuse to inflict a further burden on them.
Soft drink manufacturers cry out over unbearable N300 billion tax, may increase prices
Legit.ng reported that prominent soft drink makers have asked the national assembly to shield their businesses from imminent collapse over the N10/litre excise duty tax levied on the industry.
The manufacturers said this in Abuja with the national assembly leadership.
The Nigerian government introduced an excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages.
Source: Legit.ng
