Nigerian gov’t implements N10 tax charge on soft drinks
The Nigerian government has commenced the implementation of N10 tax per litre of soda drinks on companies importing and producing Sugar-Sweetened Beverages (SSBs) better known as ‘soft drinks’ before they can be marketed in the country.
Earlier, the federal government through the Nigerian Customs proposed taxation on soda drinks to reduce the incidences of non-communicable diseases in the country.
The Chief Superintendent of Customs, Department of Excise, Free Trade Zone, and Industrial Incentives, Mr Dennis Ituma, disclosed the commencement of the exercise during an interactive session at a Policy Breakfast Meeting in Abuja.
The meeting was organised by the National Action on Sugar Reduction to proffer ways to implement taxes and other interventions to reduce SSBs consumption in the country.
According to Ituma, the NCS had started the implementation of taxing all companies producing SSBs on June 1st, 2022, this he said started with the sensitisation of the companies on the need for the taxation.
He said: “The N10 per litre of Sugar-Sweetened Beverages has been implemented on June 1, by July 21, all excise duties must have been collected and paid into the federation account.
“It should interest you that taxation on SSBs was a policy of the Federal Government in 1984 but was stopped in January 2009. Previously both SSBs, alcoholic drinks, and tobacco were all taxed until 2009 when SSBs were removed from taxable beverages.
“Only alcoholic drinks and tobacco generates N414 billion, SSBs will further increase the revenue generated from drinks.”
Speaking on the collection method, Ituma said the government’s agency would ensure that the companies are properly taxed. The service designates resident customs officers to all factories producing SSBs who take the measurements of all daily productions.