The Nigerian federal government has announced plans to suspend its N10 tax on Sweetened Sugar beverages in the country.
Wale Edun, the Minister of Finance Wale disclosed this when he met with the members of the National Action on Sugar Reduction, NASR.
Edun said the move is part of the proposed economic stabilization plan.
According to him, the temporary suspension of the sugar tax would help firms navigate the current economic difficulties in Nigeria.
He said, “This measure aims to help beverage companies navigate the current economic difficulties without going under. The temporary suspension of the sugar tax is seen as a measure to stabilize the economy and support the beverage industry during this critical period,” said.
“We support your need for revenue, but we must find a balance”, he said.
The government had earlier announced a 150-day zero import duty window for rice, maize, wheat and other foods.
The development comes as manufacturers, and Nigerians continue to struggle with the impact of rising headline inflation which stood at 34.19 percent in June 2024, energy cost hikes and high interest rates.