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Coke, Fanta Prices To Increase As FG Imposes N10/Litre Excise Duty On Drinks

The federal government has introduced an excise duty of N10/litre on all non-alcoholic, carbonated and sweetened beverages.

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Excise duty is a form of tax imposed on the production, licensing and sale of goods.

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Zainab Ahmed, minister of finance, budget and national planning, said this during the public presentation of the 2022 Appropriation Act on Wednesday in Abuja.

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According to her, the new policy introduced is in the Finance Act signed into law by President Muhammadu Buhari on December 31, 2021.

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In 2019, Zainab Ahmed, the minister of finance, had announced that the government may introduce excise duty on carbonated drinks.

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In 2020, Hameed Ali, comptroller-general of the Nigeria Customs Service (NCS), had proposed the collection of excise duty on soft drinks.

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He had also put forward the same proposal in 2021 at an interactive session on the 2022-2024 medium-term expenditure framework (MTEF), organised by the house of representatives committee on finance.

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Apart from the new ‘Sugar Tax’ in section 17, Ahmed said the 2021 finance Act also raised excise duties and revenues for the health sector.

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The minister said the excise duty on soft drinks would discourage excessive consumption of sugar beverages which contributes to diabetes, obesity among others.

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However, checks by TheCable showed that there are other sources of sugar intake, including alcoholic drinks, biscuits, buns, cakes, dairy products, and savoury food.

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“There’s now an excise duty of N10/ per litre imposed on all non-alcoholic and sweetened beverages,” she said.

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“And this is to discourage excessive consumption of sugar in beverages which contributes to a number of health conditions including diabetes and obesity.

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“But also used to raise excise duties and revenues for health-related and other critical expenditures.

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“This is in line also with the 2022 budget priorities.”

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