Stakeholders in the beverages industry have applauded the federal government’s decision not to increase taxes on sugar-sweetened beverages (SSBs), describing the move as a lifeline for a sector facing numerous challenges.
The decision was hailed as having the potential to reignite manufacturing growth and protect jobs.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, had revealed the government’s plans to suspend the tax when the National Action on Sugar Reduction (NASR), a coalition of non-governmental organisations, visited him in Abuja.
According to the Minister, the decision was part of a broader strategy aimed at stimulating economic growth, supporting local industries, and ultimately alleviating the financial pressures on manufacturers in the country.
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Stakeholders who spoke with our correspondent emphasised that a discriminatory tax on sugar sweetened beverages negatively impacts businesses and the jobs they create.
These taxes, they said, not only harm the business environment but also its upstream suppliers and downstream distributors and retailers – and, ultimately, do not raise the desired revenues for the government.
They expressed concerns regarding the proposed review of the tax policy, citing that it will adversely affect the sector’s growth and sustainability. They pointed out that the sector had consistently been making losses, although its tax burden had continued to rise.
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