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FG Starts N10/Litre Carbonated Drink Excise Tax

The federal government has started charging N10 per litre for non-alcoholic, carbonated, and sweetened beverages.

At an Abuja policy meeting on Thursday, Dennis Ituma, chief superintendent of customs, excise, free trade zones, and industrial incentives, revealed this.

The National Action on Sugar Reduction (NASR) held the conference to propose tariffs and other measures to limit sweetened beverage consumption.

In January 2022, Zainab Ahmed, minister of finance, budget, and national planning, introduced the sugar-sweetened beverage tax.
The tax charge was implemented despite protests from the NLC, LCCI, and MAN.

Ituma announced the launch on June 1, 2022.

He said customs began taxing all sugar-sweetened beverage (SSB) producers by sensitising them.

“The N10 per litre of sugar-sweetened beverages (SSBs) was implemented on June 1, and by July 21, all excise duties must have been collected and paid into the federation account,” he said.

The federal government taxed SSBs in 1984 but ended it in January 2009.

SSBs were taxed along with alcoholic beverages and tobacco until 2009.

“Only alcoholic drinks and tobacco generate N414 billion; SSBs will increase drink revenue.”
Ituma said the agency has assigned resident customs officials to all SSB manufacturers to measure daily production to ensure compliance.