Outrage as Nigerian Senate moves to hike tax on soft drinks

A sweeping wave of criticism has trailed the Nigerian Senate’s plan to increase excise duty on non-alcoholic beverages, as economists and Nigerians have kicked against the proposal.

The controversy follows the Senate Committee on Finance’s push to amend the Sugar-Sweetened Beverage (SSB) tax— currently a fixed N10 duty per liter under Section 21(3) of the Customs and Excise Tariffs (Consolidation) Act—into a percentage-based levy on the retail price. The amendment bill, sponsored by Senator Ipalibo Harry Banigo, proposes that revenues from the higher tax be channeled into the health sector.

But there has been intense pushback against the proposal.

The Centre for the Promotion of Private Enterprise had on Monday urged the Senate to discontinue the plan to increase excise duty on non-alcoholic beverages on the ground that it would lead to the shutdown of factories, a fresh hike in prices, and massive layoffs.

Similarly, in an interview with SOCIETY WATCH on Monday, Mazi Okechukwu Unegbu, a former president of the Chartered Institute of Bankers and a university don, Prof. Godwin Oyedokun, like CPPE, condemned the move to increase excise duty on non-alcoholic beverages.

FG should not kill Nigerians with taxes — Unegbu

On his part, Unegbu lamented that Nigerians are already battling with multiple taxation and hardship.

He said that any plan to increase tax should be suspended by the Nigerian government.

They should not kill Nigerians with taxes all over the place. They should be able to be reasonable in terms of their proposals.

“So for now, I will recommend that the government should not increase any tax for now,” he said.

Excise duty hike will deepen hardship – Prof. Oyedokun.