By Ola ‘Kiya, Reporting
However, the reason the FG advanced for this decision is “to discourage excessive consumption of sugar in beverages which contributes to diabetes, obesity.”
Whereas, Nigerians believe strongly that the real reason for the action is that the FG is broke and all out to improve its depleting revenue base in order to fund the 2022 budget.
The excise duty implies that consumers of soft drinks and their like are likely to pay more to sustain their habits.
Similarly, a new ‘sugar tax’ has been introduced to raise excise duties and revenues for health-related and other critical expenditures (in line with the 2022 Budget’s priorities).
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed disclosed this at the public presentation and breakdown of the highlights of the 2022 Appropriation Act, on Wednesday in Abuja.
Mrs. Ahmed admitted that the Federal Government still captures petroleum subsidy in the 2022 budget from January to June and that a decisive decision would be taken from July 2022.
According to her, the government has to obey the provisions of the Petroleum Industry Act (PIA), which prohibits subsidies on all petroleum products including petrol.
She affirmed that already, there is no subsidy on kerosene and diesel, stressing that government would follow suit on petrol.
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