FG Considers Excise Duty On Soft Drinks

The Federal Government is considering introducing excise duties on carbonated drinks, according to the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed.

Ahmed gave the indication in an interview with newsmen on Thursday on the sidelines of the ongoing World Bank/IMF Annual Meetings in Washington DC, United States.

She said the idea was one of other areas, besides the proposed increase in VAT, that the government was looking at to broaden its revenue base.

The minister explained that the government was working hard to ensure efficiency in existing revenue streams while searching for new ones.

She said the government would consult with all stakeholders on the proposal in line with standard policy formulation process.

“Any tax that you are introducing will involve a lot of consultations and also amendments of some laws or introduction of new regulations,” she said.

Carbonated drinks include soft drink brands such as Coca Cola, Sprite and Fanta, while excise duty is a tax levied on locally produced goods.

Ahmed said her ministry was working with all the agencies to ensure that collaboration was strengthened in revenue generation.