The Manufacturers Association of Nigeria has called on the FG to halt the planned N10 naira per litre tax on sweetened and non-alcoholic beverages (Sugar Tax) which was proposed by the Finance Minister as part of its recent Domestic Revenue Mobilisation.
This was disclosed by Segun Ajayi-Kadir, Director-General of the Manufacturers Association of Nigeria in an interview with Bloomberg on Friday.
The Finance Minister in her presentation earlier this week stated that the purpose of the new ‘Sugar Tax’ introduced is to raise excise duties and revenues for health-related and other critical expenditures (in line with the 2022 Budget’s priorities).
What MAN is saying
Ajayi-Kadir said, “The revenue aspirations of government in introducing this excise may not be justified in the long run.”
“It will raise production costs, which in turn adversely affect production levels and intimately result in dwindling profits,” he added.
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The Finance Minister added that excise duty of N10/litre imposed on all non-alcoholic, carbonated and sweetened beverages is to “discourage excessive consumption of sugar in beverages which contributes to diabetes, obesity, ”
Recall Nairametrics reported that Investors on the Nigerian Stock Exchange are to pay a Capital Gains Tax of 10% on the sale of shares according to provisions of the signed Finance Act 2021. The tax is applicable on the disposal of shares worth N100 million and above.