The Federal Government of Nigeria has commenced the implementation of the mandatory N10 per litre of Sugar-Sweetened Beverages (SSBs) better known as ‘Soft drinks.’
The proposed tax on the soda drinks is aimed at reducing the incidences of Non-communicable Diseases in Nigeria and those brought on by consuming the artificial beverages.
The commencement of the exercise was disclosed during an interactive session at a Policy Breakfast Meeting in Abuja yesterday by the Chief Superintendent of Customs, Department of Excise, Free Trade Zone and Industrial Incentives, Mr Dennis Ituma.
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 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.
In his words: “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 was 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.
Federal Government approved the taxation of N10 per litre tax on SSBs in Dec. 2021.