The Federal Government of Nigeria is currently exploring a temporary suspension of the N10 tax on Sweetened Sugar Beverages (SSBs) as part of an economic stabilisation plan, according to Minister of finance and coordinating minister of the economy, Mr. Wale Edun. The minister disclosed this during a meeting with members of the National Action on Sugar Reduction (NASR) Edun outlined that the proposed suspension aims to provide interim relief amidst prevailing economic challenges, with intentions to reintroduce the tax once economic conditions stabilise. He likened the ongoing debate over SSB taxation to past discussions on tobacco taxation, emphasising the role of data-driven analysis in shaping effective public policy.
“While we are mindful of the health implications associated with the consumption of sugar-sweetened beverages, we also recognise the economic pressures faced by businesses and consumers,” said Minister Edun. “This measure aims to assist beverage companies in navigating the current economic difficulties without compromising their operations.”
He further elaborated on the government’s balancing act between revenue generation and economic support, particularly amidst currency fluctuations impacting consumer prices. “The increase in foreign exchange rates has inevitably influenced consumer pricing dynamics,” Edun noted, addressing concerns raised by industry stakeholders.
In response, Comrade Bernard Enyia, representing NASR and also serving as vice president of the Diabetes Association of Nigeria, highlighted health risks linked to SSB consumption, including obesity and dental issues. “It’s crucial to consider public health alongside economic strategies,” Enyia emphasised, underscoring NASR’s commitment to promoting healthier consumption habits.
Advocacy lead at Gatefield, Shirley Ewang, emphasised the potential of SSB taxes in revenue generation for health programs. “Despite concerns, recent financial reports indicate robust profitability for companies like Coca-Cola in Nigeria,” Ewang stated, addressing industry claims on profit margins.
Implemented under the 2021 Finance Act, the sugary drinks tax imposes a N10 levy per litre on non-alcoholic and sugar-sweetened beverages. The measure aims to address rising health concerns and bolster government revenue post-COVID-19 pandemic.
The discussions reflect ongoing deliberations within the government and among stakeholders regarding the balance between economic support and public health initiatives in Nigeria.
For further updates and official statements, follow developments through government channels and health advocacy groups.
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