Prices of Coke, Pepsi, Other Beverages to Crash as FG Suspends Sugar Tax, Manufacturers React

• Manufacturers and other industry players have hailed the federal government’s decision to suspend increases in sugar tax
• The minister of finance and coordinating minister of the economy, Wale Edun, disclosed this recently
• The minister said the decision to suspend the tax is to help businesses recover and employ more people

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Stakeholders and manufacturers in Nigeria have praised the Nigerian government’s decision to suspend the proposed increases in tax on Sugar-Sweetened Beverages (SSBs), describing the move as a lifeline for the sector.

They said this decision would reignite manufacturing growth and job creation in the industry.

FG promises to suspend sugar tax

The minister of finance and coordinating minister of the economy, Wale Edun, disclosed the government’s intention to stabilize the economy when the National Action on Sugar Reduction (NASR), a coalition of non-governmental organizations, visited him in Abuja.

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According to reports, Edun said the decision was part of a broader plan to stimulate economic growth, support local industries, and alleviate the financial pressures on Nigerian manufacturers.

He stressed the government’s decision to create a conducive atmosphere for businesses to thrive, noting that the move will help beverage companies navigate the current economic realities without distress.

There has been a clamour for an increase in taxes on SSBs, with stakeholders arguing that it affects producers and consumers. They stated that a discriminatory tax on sweetened beverages negatively impacts businesses and jobs.

Stakeholders propose 20% tax increase on SSBs

In February this year, the Nigerian government disclosed plans to implement a 20% tax on Sugar-Sweetened Beverages to curb the consumption of sweetened drinks and the rise in non-communicable diseases.

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Chukuma Anyaike, the director of the Public Health Department at the Ministry of Health and Social Welfare, announced the plans to unveil a simulation study exploring the possible fiscal and public outcomes of SSB tax in Nigeria.

FG to increase tax on carbonated drinks

Legit.ng previously reported that 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.

The move aims to encourage healthy beverage choices, reduce the intake of sugars and soft drinks, and contribute to a healthier future for Nigerians.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng