By John Ikani
Nigerian Government has started the implementation of the N10 taxation per litre of Sugar-Sweetened Beverages (SSBs) to reduce the incidences of Non-communicable Diseases.
The policy was introduced in the Finance Act which was signed into law by President Muhammadu Buhari on December 31, 2021, alongside the 2022 Appropriation Bill.
Mr Dennis Ituma, Chief Superintendent of Customs, Department of Excise, Free Trade Zone and Industrial Incentives, made this known in an interactive session at a Policy Breakfast Meeting in Abuja on Thursday.
The meeting was organised by the National Action on Sugar Reduction to proffer ways to implement tax and other interventions to reduce SSBs consumption in the country.
Excessive consumption of SSBs is a risk factor for obesity, NCDs like type 2 diabetes, heart disease, stroke, cancer and tooth decay.The World Health Organisation recommends a minimum of 20 per cent excise tax on SSBs.
What they are saying
The Customs boss said the services had commenced taxing companies that produced Sugar-Sweetened Beverages on the 1st of June, 2023.
“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,” he said.
On how customs would ensure that the companies were properly taxed, Ituma said the service designates resident customs officers to all factories producing SSBs who take the measurements of all daily productions.
