Another day, another tax note from the federal government.
At the ongoing annual meetings of the IMF and World Bank, Zainab Ahmed, the minister of finance announced that the government was considering imposing excise duties on carbonated drinks i.e. soft drinks.
At the moment, excise duty of 20% is being paid on beer, stout, spirits, cigarette and tobacco. While excise duty of 5% is paid on fruit juice, noodles, soap, recharge cards and several other products.
So if we add this to VAT increase, Tax on online transactions and others, that’s a whole lot of pressure on consumers.
Yes, the government needs more revenue but this approach is some how. A better approach is to widen the tax net (get more people to pay) and not increase the rate that a few get to pay.
Besides, there is the issue of government wastage.
What do I know, that’s just my common man economics.
PS: The two major soft drink producers have been voluntarily delisted from the NSE.