Higher SSB Tax may raise prices – Report warns

A report by ThinkBusiness Africa warns that the proposed increase in Nigeria's excise duty on sugar-sweetened beverages could significantly raise soft drink prices. The report examined a proposed amendment to the Customs, Excise Tariff, Etc. (Consolidation) Act, which seeks to replace the existing N10-per-litre excise duty with an ad valorem tax. According to the report, the new system could raise the effective tax burden to about N130 per litre based on prevailing beverage prices. The report also notes that the impact on obesity, diabetes, and hypertension remains uncertain, citing modelling by the Centre for the Study of the Economies of Africa.

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