On all non-alcoholic, carbonated, and sweetened beverages, the federal government has imposed an excise levy of N10 per litre.
This was revealed by Zainab Ahmed, Minister of Finance, Budget, and National Planning, at the public presentation of the 2022 Appropriation Act in Abuja yesterday.
Excise duty is a type of tax levied on items produced locally.The new policy, dubbed the 'Sugar Tax,' is outlined in the Finance Act, which President Muhammadu Buhari signed into law on December 31, 2021.
The excise duty on soft drinks, according to the Minister, will prevent excessive consumption of sugar beverages, which contributes to diabetes and obesity, among other things.
She stated: “There’s now an excise duty of N10/ per litre imposed on all non-alcoholic and sweetened beverages; And this is to discourage excessive consumption of sugar in beverages which contributes to a number of health conditions including diabetes and obesity.
“But it is also used to revenues for health-related and other critical expenditures. This is in line with the 2022 budget priorities.”©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.