NLC rejects excise tax on non-alcoholic drinks

The Nigeria Labour Congress (NLC) has rejected the Federal Government’s imposition of excise tax on locally produced carbonated and sugary drinks, as the beverage sub-sector will lose 40 percent of its current sales revenue which translates to about N1.9 trillion.

According to the NLC in a statement signed by Ayuba Wabba, its president, the tax (which is N10 on every litre of non-alcoholic drink) will also lead to an increase in the prices of carbonated drinks, a development that will drive the mass of Nigerians to seek sub-standard alternatives with dire implications for their health.

“The truth of the matter is that an additional increase in the retail price of carbonated drinks would put more Nigerians at risk of serious health challenges as many people would resort to consuming sub-standard and unhygienic drinks as substitutes for carbonated drinks.”

The NLC argued that its appeal to the government to rescind the introduction of the tax on non-alcoholic drinks becomes even more compelling when the projected immediate revenue expected from the policy is weighed against the potential long-term loss to both manufacturers and the government.