- Nigeria government will work with the National Assembly to amend the VAT law on carbonated drinks and luxury items.
- Beverages like Coke, Pepsi, and energy drinks may be affected.
- Finance minister says the increase will help the government in providing infrastructure for its people.
Nigeria is planning to increase tax on Coke, Pepsi and other luxury items
Nigeria is working on modalities to increase Value Added Tax on some carbonated drinks and beverages like Coke, Pepsi, and energy drinks may be affected.
Nigeria is working on modalities to increase Value Added Tax on some items which include carbonated drinks and other luxury items in 2019.
Beverages like Coke, Pepsi, and energy drinks may be affected.
Zainab Ahmed, Nigeria's Minister of Finance, stated this on Wednesday at the inauguration of the Strategic Revenue Growth Initiative.
Ahmed said the federal executive council will take a request to the National Assembly for an amendment of the VAT law, according to a report by News Agency of Nigeria.
Nigeria is facing fiscal challenges
Nigeria is facing a huge fiscal challenge to meet up with infrastructural development as the population continues to grow.
The finance minister said the increase will help the government in providing infrastructure for its people.
“There will be a VAT increase. During the course of 2019, we will have clarity as to which items and what the rate will be and we will have to take a request to the National Assembly for amendment before it takes effect,” she said.
Nigeria government raises tariff
In December 2016, the government raised duties on luxury goods and beverages imported into the country under the Economic Community of West Africa's (ECOWAS) Common External Tariff (CET) regime.
The increase was 10 to 70% the value of imported yachts, luxury automobiles such as SUVs, boats, and alcoholic beverages.
Last year, it also raised excise duty for alcoholic beverages and tobacco to reduce health hazards.
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