Coca Cola to Cost More as Customs Mulls Return of Excise Duty

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SWITZERLAND, AUGUST 21 – The prices of soft drinks, including Coca Cola, are expected to increase soon as the Nigeria Customs Service (NCS) propose to resume collection of excise duty on soft drinks, abolished in 1993 by the interim national government of Ernest Shonekan.

Appearing before a joint committee of the senate on finance and national planning on Thursday, Hameed Ali, comptroller-general of the NCS, said the federal government should lift the tax waivers for companies producing soft drinks within the country.

Ali argued that if companies producing alcoholic beverages and tobacco could pay taxes, those producing soft drinks could do the same.

“We have been pushing for the expansion of our own excise collection. During the (Ernest) Shonekan regime (in 1993), excise was stopped for carbonated drinks manufacturers, like Coca-Cola,” the retired colonel said.

“The only one approved for us are tobacco alcoholic beverages. The understanding then was that tobacco and alcoholic beverages affect the health of citizens and should be taxed.

“But we know that carbonated drinks are also injurious to the health of the people due to the high sugar content.

“Therefore if tobacco and alcoholic beverages companies are paying tax, the carbonated drink manufacturers should also pay.”

Ali also informed the lawmakers that revenue from import would reduce because of a number of agreements Nigeria has signed.

Customs would generate N1.2 trillion before the end of the year because it had already collected N830 billion as of the end of July, the comptroller-general said.

Also speaking at the event, Senate President Ahmad Lawan said there was need to look into why companies such as Coca-Cola do not pay excise duty.

“I don’t understand why Coca-cola for instance should not pay excise,” Lawan said.

“It is an established company all over the world and it dominates the soft drinks industry.”

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