What Nigerians think about government’s plan to tax soft drinks
When I heard about this new excise duty by the minister, I was worried. Are the taxes they are planning to implement not going to be too much for the masses? Already, we have the pay as you earn tax; which is deducted from our salaries. Then the value-added tax that we pay for the […]
When I heard about this new excise duty by the minister, I was worried. Are the taxes they are planning to implement not going to be too much for the masses? Already, we have the pay as you earn tax; which is deducted from our salaries. Then the value-added tax that we pay for the commodities we use every day. Now, they are about to introduce new ones, including this soft drink tax. It is not a nice idea at all. It’s going to be too much on the masses. Are we not suffering enough at the moment? People are finding it difficult to feed and take care of their families as it is. Introducing a new tax on soft drinks, of all things, is just aimed at making the lives of the average Nigerian harder.
Olutosin Adunbarin, 34, Ondo State, Accountant
More Nigerians may lose their jobs and some producers of carbonated drinks will likely close shop because of poor sales should the Federal Government implement its planned imposition of tax on soft drinks.
In my opinion, the introduction of excise tax on non-alcoholic beverages should not be the case. With the myriad of taxes and levies already being paid by businesses, the reintroduction of excise in a sector with high price elasticity means that government is desirous of killing businesses in the sector completely.
Once prices are increased, consumers will push back, resulting in a sharp decline in demand. With the planned increase in VAT, the introduction of excise will further burden operators in the sector with the following consequences: low demand leading to unsold products; incomes squeeze on businesses that are already struggling with low margin and massive staff layoff, which will affect over 250,000 direct and indirect employees in the sector among others.
Diabuah Juliana, 54, Lecturer, Asaba
To me, taking soft drinks is a luxury, and if you insist on taking it, then you have to pay the tariff. The government’s decision will even help people make healthier drinks by themselves in their homes, which the government can’t force them to pay tax on. If I make zobo in my house, will the government ask me to pay tax on it? Honestly, I believe this newly introduced tax will help people live healthier and do away with carbonated and sugary drinks. If the price of soft drinks increases, many people will not buy it again and it will help us to go back to our local products like soya, tiger-nut milk, kunu , smoothies, zobo etc. If you look at the ingredients in soft drinks, they are not good for our health. Why must people use their money to buy sickness? So, I feel it’s the government’s prerogative to place tariffs on soft drinks if they want to.
Temitope Mumeen, 37, Accountant, Osun
As an accountant, I think the government should adopt a holistic approach to taxes, which would include abolishing some low existing taxes, and not just focusing on introducing new ones. With this new tax, the prices of soft drinks will go up which I feel will increase the hardship of average Nigerians. It will majorly affect the sellers because the new prices might significantly reduce the consumption of the drinks, which will automatically affect the income of the sellers. However, if the taxes will be used to better Nigeria’s economy, it might eventually turn out to be a good decision.
Ogunfuye Damilola, Businessman, 33, Ondo State
Well, I think people are very sceptical about this development because they feel the government hasn’t done much for the masses. There is no accountability and trust. The people do not trust the government to put the money to good use. The truth is: this is just another way to embezzle money. Food is not cheap, so our little way of quenching our thirst should be very affordable.
Gurama A. Gurama, 27, Lecturer GSU, Gombe
An increase in tax will reduce the level of output, and in the long run reduce the level of capital stock, thereby reducing employment.
So in a nutshell, a tax increase will have a negative impact on, not only the soft drinks but other goods.
However, no country will have good economic development without tax. Tax stands as one of the strongest tools to execute any national budget, but the average Nigerian will only suffer the consequences of tax payment without benefiting from its positive side.
However, as a food scientist, I think the level of sugar consumption will reduce, especially when there is a rise in the prices of drinks, which would be difficult for the common man to afford. This will improve the state of our health indirectly as consuming too much sugar harms our health.
Buhari Abba Rano, 35, Broadcast Journalist, Kano
Taxing soft drinks is a smart choice for the Federal Government, with both health and fiscal benefits.
Soft drinks are the major sources of sugar in the diet, and its consumption is increasing in most countries, especially amongst children and adolescents.
Just like taxes on alcohol and tobacco, making unhealthy drinks more expensive would be a positive step, taxing soft drinks can help reduce consumption of sugar.
To me, therefore, the proposed tax is a welcome development because over-consumption of sugar is a major contributor to obesity, diabetes and tooth decay.
Mohammed Chiroma Hassan, 29, Program Officer – CITAD, Bauchi
The news of the Federal Government considering excise duty on soft drinks did not come as a surprise. We have recently witnessed many unfriendly policies by the CBN that has seriously distorted the pockets of ordinary citizens battling to meet up with their basic needs.
While broadening the revenue base for the government through an increase in VAT is a great initiative, Nigerians are only questioning the whole tax system because it is not affecting their lives positively.
Tax is not a bad thing as long as the taxpayers see the value for their money.