Sugar-Sweetened Beverage Tax: FG Urged To Strictly Commit Proceeds to Health Projects

Civil society groups and stakeholders in the health sector have called on the federal government to ensure that the proceeds of the newly introduced Sugar-Sweetened Beverage (SSB) tax are being used to fund health intervention projects for the benefit of Nigerians.

Since the 1st of June 2022, the Nigeria Customs Service (NCS) has commenced the implementation and enforcement of the Sugar-Sweetened Beverage (SSB) tax.

A N10 per litre excise tax on all non-alcoholic, carbonated and sweetened beverages in the 2021 Finance Act had been introduced by the Federal Government.

The charge had been given by the stakeholders during the policy breakfast meeting on the SSB tax, which had been attended by high-level officials and representatives from the Federal Ministry of Health, Federal Ministry of Finance, Budget and National Planning, National Assembly, Nigeria Customs Service, World Bank as well as a coalition under the National Action on Sugar Reduction (NASR).

Read Also: Sugar-Sweetened Beverages To Be Taxed N10 Per Litre, Says FG

Their request came in light of confirmations that were made by both Dennis Ituma, the Chief Superintendent of Customs (CSC), and Opeyemi Itulua, the CSC, that enforcement of the regulation had commenced in earnest early last month and that companies are expected to begin remitting the first set of taxes to the government as early as the 21st of July.

Customs had been meeting with finance about the sugar tax, he added, adding that the former had made progress with its implementation.

Ituma said that the law requires companies to remit taxes from carbonated drinks monthly, explaining that the revenues will then be transferred to the federation account.

In a reaction to the plea given by the stakeholders that the monies should be specifically invested in health projects to boost infrastructure, Mr. Musa Umar, a representative of the Federal Ministry of Finance, Budget and National Planning, explained that their request could not be guaranteed at the meeting and had advised for them to refer the issue to the higher authorities which include political office holders as well as the ministry of health for the proper attention.