Business
Manufacturers kick as FG imposes N10 excise duty on Coca-Cola, Pepsi, Bigi Apple, others
The Federal Government (FG) has imposed an excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages such as Coca-Cola, Pepsi, Bigi Apple.
Excise duty is a form of tax imposed on the production, licensing and sale of goods.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this during the public presentation of the 2022 budget on Wednesday in Abuja.
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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She said, “There’s now an excise duty of N10 per litre imposed on all non-alcoholic and 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 it is 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.”
Reacting, Manufacturers Association of Nigeria, warned that the new tax imposed on carbonated drinks would be counter-productive.
MAN had commissioned a report detailing the effects of reintroducing excise duty on carbonated drinks and warned that it would be counterproductive and lead to revenue loss for the government.
The Director-General of MAN, Segun Ajayi-Kadir, also affirmed the content of the report.
He said, “I would like to say that the introduction of excise duty of N10/litre on non-alcoholic, carbonated and sweetened beverages, despite its potential overwhelming negative impact is rather unfortunate.”
