Wale Edun, the Minister of Finance and Coordinating Minister of Economy, has announced that the Federal Government is contemplating a temporary suspension of the sugar tax.
He stated this on Wednesday when the National Action on Sugar Reduction (NASR), a coalition of non-governmental organisations, visited him in Abuja.
On January 5, 2022, the federal government introduced an excise duty of N10/litre on all non-alcoholic, carbonated, and sweetened beverages, citing the need to discourage excessive consumption of sugar beverages which contributes to diabetes, obesity and other health issues.
Edun said the potential temporary suspension of the sugar tax is under a six-month economic stabilisation plan aimed at helping beverage companies navigate the current economic difficulties without going under.The minister said the tax will be reintroduced as soon as the economy stabilises, as the intervention aims to support the beverage industry “during this critical period”.
Edun noted that the implementation of the sugar tax would improve public health and generate additional revenue for the government.
He reiterated the need for the tax, highlighting the dual pressures on beverage companies regarding job creation and poverty reduction, and the negative health consequences of their products.
Edun said while job creation by these companies was a positive outcome, the consumption of SSBs carries significant public health costs.
The minister said the government’s tax revenue from SSBs must be balanced against industry needs, including pricing and the cost of living.
He likened the arguments against the SSB tax to those made in the past against tobacco taxation, underscoring the importance of data-driven analysis in shaping public policy.
According to him, while the government is not in favour of companies selling unhealthy products, it recognises the need to support businesses and help people cope with the current cost of living.
21st Century Chronicle
