By Modupe Gbadeyanka
The federal government is planning to suspend the N10 tax on Sweetened Sugar Beverages (SSBs), otherwise known as sugar tax.
This information was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, during a meeting with members of the National Action on Sugar Reduction (NASR).
However, he stressed that the tax may be returned, noting that the pause in the implementation of the initiative was to give beverage manufacturers a breather, as this was part of the government’s economic stabilisation plan.
“This measure aims to help beverage companies navigate the current economic difficulties without going under.
“The temporary suspension of the sugar tax is seen as a measure to stabilise the economy and support the beverage industry during this critical period,” Mr Edun told his guests.
He compared the arguments against the SSB tax with those made in the past against tobacco taxation, highlighting the importance of data-driven analysis in shaping public policy.
According to him, while the government does not support companies selling unhealthy products, it recognises the need to support businesses and help people cope with the current cost of living.
He also emphasised the role of the Presidential Economic Coordination Council in this decision, acknowledging the necessity of government revenue and the need to offer relief amid economic challenges.
“We support your need for revenue but we must find a balance. The increase in foreign exchange rates is being passed on to consumers.
“While the official exchange rate was artificially pegged, products are often priced at the parallel market rate, meaning companies do not pass on the actual exchange rate to customers,” the Minister argued.