BIG WIN FOR BUSINESS! Court Declares FG’s ₦10 Per Litre Tax On Carbonated Drinks UNLAWFUL

BIG WIN FOR BUSINESS! Court Declares FG’s ₦10 Per Litre Tax On Carbonated Drinks UNLAWFUL

“A Federal High Court in Abuja has struck down the Nigerian government’s excise duty on carbonated drinks, ruling that the tax is unlawful. The court’s decision comes after a three-year legal battle initiated by the Nigeria Employers’ Consultative Association (NECA) in 2022. NECA had challenged the government’s introduction of a ₦10 per liter tax on non-alcoholic, carbonated, and sweetened beverages, arguing that it was unjustifiable.

The tax, often referred to as a ‘sugar tax,’ was intended to reduce the consumption of sugary drinks linked to health issues such as diabetes, obesity, and other related conditions. However, the court has deemed the tax invalid, stating that the Minister of Finance’s circular implementing the tax was beyond their authority.

The judgment, delivered by Justice O.A. Egwuatu, declared that the circular issued by the Ministry of Finance was ‘invalid and ultra-vires,’ meaning that it exceeded the ministry’s powers. The court also ruled that the Nigeria Customs Service was not entitled to demand transport and feeding allowances from NECA members.

The ruling is a significant victory for businesses, which had argued that the tax would have a negative impact on their operations. The case had named the Minister of Finance, Wale Edun, and the Minister of Budget and National Planning, Atiku Bagudu, as defendants.”

For More Information And News Update, Join Ireporteronline WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32 For advertisement inquiries only, kindly send a message to 09010649814 on Whatsapp