The Centre for the Promotion of Private Enterprise has explained why Nigeria’s House of Representatives should reject the Sugar-Sweetened Beverage Tax (non-alcoholic drinks) bill’s passage.
CPPE Chief Executive Officer Dr Muda Yusuf, in a statement at the weekend, said the bill, if passed by the Green Chamber, would worsen the cost of production across the value chain.
According to him, an additional tax on manufacturers, by extension on Nigerians despite harsh economic realities, is insensitive and ill-timed.
The economic think tank said the legislature by the National Assembly counters the President Bola Ahmed Tinubu’s stance on easing doing business in the country.
“The bill is ill-timed, insensitive to prevailing economic realities, and inconsistent with the federal government’s commitment to reducing the tax burden on businesses.
“Any additional tax burden on the industry would inevitably increase production costs, raise consumer prices, weaken demand, reduce capacity utilisation and threaten jobs across the value chain. At a time when the economy needs stronger industrial growth, this Senate proposal risks becoming a tax on production, investment and employment,” CPPE stated.
DAILY POST reports that the bill which proposed a N10 duty on non-alcoholic drinks already scaled through the Senate last week on Friday.
