The Federal Government has given reasons for imposing an excise duty of N10/litre on all non-alcoholic, carbonated and sweetened beverages.
Speaking during the public presentation of the 2022 budget on Wednesday in Abuja, Minister of Finance, Budget and National Planning, Zainab Ahmed said the decision was in the interest of Nigerians.
She stated that the excise duty on soft drinks would discourage excessive consumption of sugary beverages which contribute to diabetes, obesity and so on.
The Minister added that the new tax would help raise revenues for the health sector and other critical expenditures.
She disclosed that the new policy introduced is in the 2021 Finance Act signed into law by President Muhammadu Buhari on the 31st of December, 2021.
According to her, “There’s now an excise duty of 10/per litre imposed on all non-alcoholicand 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 also used to raise excise duties and revenues for health-related and other critical expenditures.
“This is in line also with the 2022 budget priorities.”
In 2019, the Minister of Finance had revealed that the Federal Government may introduce excise duty on carbonated drinks.
The Comptroller-General of the Nigerian Customs Service (NCS), Hameed Ali, had also proposed the collection of excise duty on soft drinks in 2021.
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