The revenue drive by government
agencies is about to hit your thirst.
The Nigeria Customs Service (NCS)
is proposing to collect excise duty on soft drinks, abolished in 1993 by the
interim national government.
Appearing before a joint
committee of the senate on finance and national planning on Thursday, Hameed
Ali, comptroller-general of the NCS, said the federal government should lift
the tax waivers for companies producing soft drinks within the country.
Ali argued that if companies
producing alcoholic beverages and tobacco could pay taxes, those producing soft
drinks could do the same.
“We have been pushing for the
expansion of our own excise collection. During the (Ernest) Shonekan regime (in
1993), excise was stopped for carbonated drinks manufacturers, like Coca-Cola,”
the retired colonel said.
“The only one approved for us are
tobacco alcoholic beverages. The understanding then was that tobacco and
alcoholic beverages affect the health of citizens and should be taxed.
“But we know that carbonated
drinks are also injurious to the health of the people due to the high sugar
content.
“Therefore if tobacco and
alcoholic beverages companies are paying tax, the carbonated drink
manufacturers should also pay.”
Ali also informed the lawmakers
that revenue from import would reduce because of a number of agreements Nigeria
has signed.
Customs would generate N1.2
trillion before the end of the year because it had already collected N830
billion as of the end of July, the comptroller-general said.
Also speaking at the event,
Senate President Ahmad Lawan said there was need to look into why companies
such as Coca-Cola do not pay excise duty.
“I don’t understand why Coca-cola
for instance should not pay excise,” Lawan said.
“It is an established company all
over the world and it dominates the soft drinks industry.”
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