The federal government in the past few years has imposed hefty taxes on the documented sector, fueling the informal economy. It’s a double whammy, as not only are the higher prices lowering consumption in a country where nutritional and safe food intake is already abysmally low, but also spurring the informal products market, which is neither tax compliant nor conforming to the stipulated food standards.

The cases in hand are fruit juices and dairy products (including infant formula), where the demand curve was growing and businesses were investing in the value chain. Market forces were addressing the long-standing issue of wastage in perishable food items—fruits and milk—which was letting the farmer community benefit. Then, the investment in the right infrastructure was paving the way to open export markets.

However, the industries are in reverse gear now due to the imposition of general sales tax (GST) and federal excise duty (FED).

The fruit beverages market was growing at healthy volumes before the FED’s imposition. The government was collecting decent chunks from GST as well. In........

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