The federal government is considering a temporary suspension of the N10 tax on Sweetened Sugar Beverages (SSBs) to help stabilize the economy.
Finance Minister Wale Edun announced this during a meeting with the National Action on Sugar Reduction (NASR), noting that the tax could be reintroduced once economic conditions improve.
Edun compared opposition to the SSB tax with past resistance to tobacco taxes, emphasizing the need for data-driven policy decisions.
He acknowledged the importance of supporting businesses and individuals amid rising living costs while balancing the need for government revenue.
The sugary drinks tax was initially introduced to combat rising obesity rates and other health issues, following the 2021 Finance Act.
The temporary suspension aims to provide relief to the beverage industry during current economic challenges while maintaining a focus on future economic stability.
(Vanguard)