“No More N10%: FG Moves to Increase Tax on Coke, Pepsi, Fanta, Other Carbonated Drinks
- The Nigerian government has revealed that it would increase taxation on sugary drinks from 10% to 20%
- The Federal Ministry of Health said the move is to reduce the intake of sugary drinks and the health concerns associated with it
- The government said the move aligns with global trends as other countries have successfully implemented the sugar tax
The Federal Ministry of Health has committed to raising the tax on sugar and other sweetened beverages from 10% to 20%.
The move is to fight the increasing public health concerns associated with excessive sugar consumption.
Source: Getty Images
Federal Government committed to raising taxes on sugary drinks
The move aims to encourage healthy beverage choices, reduce the intake of sugars and soft drinks, and contribute to a healthier future for Nigerians.
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Reports by Vanguard say that the increase in global health issues concerning high sugar intakes, including child obesity, diabetes, and dental problems, necessitated other countries such as Saudi Arabia, South Africa, Spain, Portugal, and many others to take sides with the global SSB tax of 20% as recommended by World Health Organisation (WHO).
By hiking the price of sugar and sweetened products, the ministry hopes to discourage consumers from buying them and encourage healthier beverage alternatives.
According to the Director/Head of the Public Health Department, Federal Ministry of Health Chukwuma Anyadike, taxation on sugar beverages has been implemented successfully in other countries.
Activists advocate increase in sugar tax
Anyadike disclosed this at a Pro-Health Tax Policy Campaign on SSB held at the Federal Ministry of Finance and Health, respectively, in Abuja.
She said that introducing the tax in Nigeria will also reduce excess sugar consumption and the load of NCDs.
The representative of the National Action and Sugar Reduction Coalition (NASR), Edozie Chukwuma, called on the Nigerian government to make laws to ban or reduce the consumption of sugary drinks.
January this year, the Nigerian government announced plans to increase taxation on carbonated drinks.
FG takes N10 per litre of every sugary beverage
The new tax sought to add N10 per litre on carbonated drinks, leading to manufacturers protesting against the move, stating that it was against their business.
In the 2021 Finance Act, the federal government introduced an excise duty called Sugar Tax.
In April this year, the move was halted after an outcry by the manufacturers, who insisted that the move was bad at that time.
The Manufacturers Association of Nigeria has applauded the Federal Government’s decision to suspend the proposed increase in excise duty on alcohol, non-alcoholic beverages, and tobacco.
Nigerians to pay more for beverages, sweetened drinks as Federal Government enforces N10/litre sugar tax
Legit.ng reported that the federal government has announced the start of a N10 per litre sugar tax on carbonated sugar drinks and beverages, which it claims would assist in battling noncommunicable diseases (NCDs).
The Chief Superintendent of Customs, Department of Excise, Free Trade Zone and Industrial Incentives, Dennis Ituma, made the announcement in Abuja, Dailytrust reports.
The National Action on Sugar Reduction (NASR) organised the event to discuss strategies to implement tax and other interventions to reduce the consumption of Sugar-Sweetened Beverages (SSBs) in Nigeria.
Source: Legit.ng
