Following hints that 1993 abolished Excise Duty on carbonated soft drinks is set to return, rather than panic or refuse the Federal Government’s intention, 62% of Nigerians have agreed that a tax on soft drinks will help to lower the high costs of managing non-communicable diseases like diabetes.
The above is a result of a recent survey by a leading polling firm; the NOI Polls in partnership with Gatefield, Research Hub Africa, and the Federal Ministry of Health.
The Survey’s Breakdown
About 90% of Nigerians drank at least one soft drink each week, and around 40% drank them daily.
Non-communicable diseases like diabetes, hypertension, heart disease, and cancer account for one in three deaths in Nigeria, yet, less than 50% of Nigerians are aware that soft drink consumption is associated with an increased risk of these diseases
By perception, 54% of Nigerians would also support a tax on soft drinks if the tax revenue were reinvested in the provision of healthcare services.
Corroborating the survey’s outcome, Dr. Olumide Okunola, Senior Health Specialist at the World Bank, recently submitted that the Federal Government should impose taxes on energy drinks, adding that taxes on Sugar-Sweetened Beverages (SSB) should be included in the 2022 budget.
What you should know
- The Nigerian government is putting a finishing touch ahead of the 2022 budget implementation on the reintroduction of excise duty on all non-alcoholic drinks manufactured in the country, which could affect Read.
- Excise duty is a levy placed on the manufacture of locally produced goods.
- This survey is coming on the heels of a warning from the Manufacturing Association of Nigeria, MAN decrying the proposed re-introduction of excise duty on non-alcoholic drinks, saying producers could lose up to ₦1.9 trillion in revenue sales by 2025.