FG kicks off implementation of sugar tax
By Felicia Nwosu
The Nigerian Government has kicked off with implementation of the N10 taxation per litre of Sugar-Sweetened Beverages (SSBs) to reduce the incidences of Non-communicable Diseases.
Dennis Ituma, Chief Superintendent of Customs, Department of Excise, Free Trade Zone and Industrial Incentives, who revealed this at an interactive session in Abuja, said 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.
Ituma reaffirmed that customs has started the implementation of taxing all companies producing SSBs since June 1st, 2022, which he noted, started with the sensitisation of the companies on the need for the taxation.
“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 SSBs, alcoholic drinks and tobacco were all taxed until 2009 when SSBs were removed from taxable beverages. Only alcoholic drinks and tobacco generate N414 billion, SSBs will further increase the revenue generated from drinks.”
Revealing on how customs would ensure that the companies were properly taxed, Ituma explained that the service designates resident customs officers to all factories producing SSBs who take the measurements of all daily productions.
Recall that the Federal Government of Nigeria approved the taxation of N10 per litre tax on SSBs in Dec. 2021.
Dr Las Eze , a member of the coalition and CEO TalkHealth9ja a Public Health Physician, called for a well-defined policy framework that would support direct transfer of any money that accrues from this tax to certain health interventions.
“Also there has to be accountability and efficient utilisation of these resources. These monies will be part of the consolidated revenue fund of the Federal Government, which basic health care provision fund takes not less than one per cent every year.
Musa Umar, a representative of the Federal Ministry of Finance Budget and National Planning on his part urged the coalition to engage policy makers in the implementation of the SSBs tax fund.
Umar said it was important to get those at the high level of policy making involved in the advocacy to get their commitment to channel the funds from the tax to health issues that resulted out of the excessive consumption of SSBs.
Meanwhile, minister of finance and budget planning, Zainab Ahmed, while presenting the breakdown of the 2022 budget, stated that it was part of the government’s efforts to prevent and discourage excessive consumption of sugar in beverages, which contributes to obesity, diabetes, and other diseases.
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