Federal government introduces excise duty on beverages

The federal government has introduced an excise duty of 10 naira per litre on all non-alcoholic, carbonated and sweetened beverages.

Minister of finance, budget and national planning Zainab Ahmed disclosed this during the public presentation of the 2022 appropriation act on Wednesday in Abuja.

Excise duty is a form of tax imposed on the locally manufactured goods.

The new policy, now referred as sugar tax, is contained in the finance act signed into law by President Muhammadu Buhari on December 31, 2021.

Ahmed said the 2021 finance act also raised excise duties and revenues for the health sector. The minister said the excise duty on soft drinks would discourage excessive consumption of sugar beverages which contributes to diabetes, obesity among others