FG Begins Implementation Of N10 Tax On Soft Drinks

Companies importing and producing Sugar-Sweetened Beverages (SSBs) better known as ‘Soft drinks’ in Nigeria are now mandated to pay N10 tax per litre of the soda drinks before it can be marketed in the country, Naija News understands.

This is as the Federal Government through the Nigerian Customs commenced the implementation of the early proposed taxation on the soda drinks to reduce the incidences of Non-communicable Diseases in Nigeria.

The commencement of the exercise was disclosed at 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.

Naija News understands that 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 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.

President Muhammadu Buhari‘s administration had approved the taxation of N10 per litre tax on SSBs on Dec. 2021.