BusinessDay

Tax on non-alcoholic beverages good for revenue, bad for poor Nigerians – Rewane

The Federal government’s recently imposed excise duty on non-alcoholic drinks will have a positive impact on the country’s revenue, Bismark Rewane, the CEO of Financial Derivatives Company Limited said.

He said at the ongoing 2022 Economic Outlook event by the Nigerian British Chamber of Commerce, Thursday.

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

“It however punishes the poor who are buying cheaper drinks,” Rewane said.

Read also: Nigerians to pay more on non-alcoholic, carbonated beverages

The new policy, now referred to as ‘Sugar Tax’, is contained in the Finance Act signed into law by President Muhammadu Buhari on December 31, 2021.

Rewane also mentioned that the Federal Government could have taxed the people producing sugar instead of everyone.

According to Zainab Ahmed, Minister of Finance, Budget, and National Planning, the excise duty on soft drinks would discourage excessive consumption of sugary beverages which contributes to diabetes, obesity among others.

Rewane also explained that Nigeria has few cases of obesity compared to advanced countries.

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