Govt enforces N10/litre sugar tax, Nigerians to pay more for beverages, sweetened drinks

The Federal Government has said it has commenced the implementation of a N10 per litre sugar tax on carbonated sugar drinks and beverages which it said would help combat Non-communicable Diseases.

The Chief Superintendent of Customs, Department of Excise, Free Trade Zone and Industrial Incentives, Dennis Ituma, said this at a Policy Breakfast Meeting in Abuja.

The event was organised by the National Action on Sugar Reduction to proffer ways to implement tax and other interventions to reduce consumption of Sugar-Sweetened Beverages in Nigeria.

The implementation is coming despite pleas by the Manufacturers Association of Nigeria and some related stakeholders asking the government to halt the policy introduced in the Finance Act, signed into law by President Muhammadu Buhari on December 31, 2021, alongside the 2022 Appropriation Bill.

In a statement signed by a representative of the 12-member of NASR, Omei Bongos-Ikwue, it said that the customs officials had commenced taxing companies that produced Sugar-Sweetened Beverages on the 1st of June, 2023.

“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 to know athat 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 was removed from taxable beverages,” he said.