Follow Us on Google
Manufacturers Association of Nigeria (MAN) has lauded the Federal Government’s decision to halt the proposed increase in excise duty on alcoholic, non-alcoholic beverages, tobacco and to allow the 2022-2024 sectoral roadmap run its full course.
Director General , MAN, Segun Ajayi-Kadir, who made the statement disclosed that the Finance Minister, Zainab Ahmed, during a visit assured the association that the 2023 Fiscal Policy Guidelines and the reconsideration of the Finance Act 2023 have been concluded and would be released soon.
“In specific terms, she assured that the guidelines would not include the proposed increase in Excise duty on Beer, Wines and Spirits, Tobacco and Non-Alcoholic Beverage in 2023, but rather allow the Excise regime to run its full course from 2022 to 2024 as programmed in the Road Map by the Federal Government in 2022.
The association said introducing the excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages in the country was a major setback for the productive sector in 2022.
The charge was part of a new policy introduced in the Finance Act, signed into law by President Muhammadu Buhari on December 31, 2021, alongside the 2022 Appropriation Bill.
According to her, the new sugar tax was introduced to raise excise duties and revenues for health-related and other critical expenditures in line with the 2022 budget priorities.
Although the revenue was projected at N81billion from 2021-2025, the potential loss to government in other forms of taxes and revenue cut leaves much to be desired.
The MAN, through a series of advocacy channels warned that a new tax imposed on carbonated drinks and others would be counter-productive and that government should devise other means of generating revenue rather than inadvertently stifling the productive sector which is already struggling. Still grappling with a recent increase in line with a three-year roadmap, the proposed increase in excise duty on beer, wines and spirits, tobacco and non-alcoholic beverages in 2023 became another nightmare to a sector gasping for survival amid evident setbacks occasioned by Naira scarcity, forex crunch, infrastructure deficit but to mention a few.
With these growing concerns, MAN led by the President, Otunba Francis Meshioye, paid a courtesy visit and presentation to the Minister of Finance, Budget and National Planning by a delegation of the Manufacturers Association of Nigeria. The outcome of the visit allayed the fears of MAN. The Honourable Minister reassured the delegation of the government’s commitment to the wellbeing of the manufacturing sector and the concerned industry.
“The association is gladdened by the assurances of the Honourable Minister, Hajiya Zainab Ahmed, that the 2023 Fiscal Policy Guidelines and the reconsideration of the Finance Act 2023 have been concluded and will be released immediately. In specific terms, she assured that the guidelines would not include the proposed increase in Excise duty on Beer, Wines and Spirits, Tobacco and Non-Alcoholic Beverages in 2023, but rather allow the Excise regime to run its full course from 2022 to 2024 as programmed in the Road Map by the Federal Government in 2022.
This waiver is a huge relief to our members across the Federation and will signpost the administration’s support for the sustenance of manufacturing in Nigeria on this score.
“Furthermore, MAN received the understanding of the government on the introduction of 0.5% Import surcharge, which is meant to fulfill Nigeria’s obligations to the continental agreement in the implementation of Africa Continental Free Trade Area (AfCFTA) agreement, as well as the promised intervention on resolving the logjams in the interpretation of the Tin Plate, HS Code 7210. 12.00.00 with the Nigeria Customs Service.
“The association views the Federal Government’s move as one that will encourage our members who are currently struggling with unprecedentedly low sales, forex squeeze, inadequate electricity supply and multiple taxes and levies from the three tiers of government. This move will reassure members of the administration’s respect for stakeholder engagement and the usefulness of public-private sector dialogue.
“As MAN continues to engage with the government meaningfully on matters bordering on the nation’s economic prosperity, we look forward to improved performance of the manufacturing sector and the economy.”
