Senate (4).webp
The Digest:

A plan by the Nigerian Senate to increase the excise duty on non-alcoholic beverages like soft drinks has triggered a wave of criticism from economists and citizens alike. Experts warn that the move could force factory closures, spike prices, and trigger massive job losses, exploring the heavy tension between revenue generation and economic survival for ordinary people.

Key Points:
  • The Senate proposes shifting the sugar-sweetened beverage tax from a fixed N10 per litre to a percentage of the retail price.
  • The Centre for the Promotion of Private Enterprise (CPPE) warned the hike could lead to factory shutdowns and massive layoffs.
  • Economists state the tax would cause an immediate rise in prices, disproportionately hurting low-income families.
  • Small businesses, like roadside vendors and shops, risk closure due to reduced consumer demand.
  • Experts question the timing, arguing it worsens hardship amid record inflation and low purchasing power.
  • The proposal is seen as a policy inconsistency, recalling a similar tax was suspended in 2023 after outcry.
  • Critics urge the government to widen the tax net and improve collection instead of raising consumption taxes.
The debate frames a simple bottle of drink as a symbol of a larger struggle, a reminder that in an economic storm, even modest pleasures become contested ground, testing what it means to remain rooted amidst rising pressures.

Sources: Daily Post Nigeria.