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By Merit Ibe
The Manufacturers Association of Nigeria (MAN) has decried a possible introduction of a Tax Stamp System(TSS) for excisable goods, saying it will hinder growth of local industries and erode gains in tax simplification.
Director General of MAN, Segun Ajayi-Kadir, who made the assertion yesterday, noted that government consideration of the Excise Tax Stamps is predicated on the supposed benefits of curbing smuggling and counterfeiting, enhancing transparency and traceability in the excise regime, and supporting revenue growth.
However, Ajayi-Kadir said while the efficacy of this measure is yet to be validated, findings indicate that tax stamps portend significant adverse implications without tangible benefits.
Appreciating government’s efforts to harmonize and modernize tax administration, and promote greater accountability within Nigeria’s tax system through the enactment of the Nigeria Tax Act 2025, the MAN DG viewed that the proposed TSS warrants careful reflection and caution.
“We firmly believe that while the intention is understandable, evidence around the world shows that the TSS often imposes heavy compliance costs, creates operational bottlenecks, and yields limited incremental revenue.
“Unequivocally reiterates its members’ commitment to excise contributions, while firmly maintaining its position on deliberate private public sector efforts to co-create a conducive operating environment for industries to thrive.”
Ajayi-Kadir lamented that the tax stamp policy is coming at a time when industrial operators are already grappling with rising excise rates, high energy prices, inadequate energy supply, and high inflation, making the additional burden of implementing tax stamps a serious threat to industrial sustainability.
He called on the government to be wary and reject any persuasion to rollout or implement Excise Tax Stamps, in whatever guise or form, until a comprehensive stakeholder engagement process is undertaken and an inclusive impact assessment study is carried out.
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The DG advised the government to rely on existing digital systems (ERS and E-invoicing) which already provide end-to-end tracking and transparency, avoiding duplication and unnecessary vendor-driven solutions.
“Protect the gains of the 2025 Tax Reform Acts by avoiding measures that reintroduce complexity and costs, particularly for SMIs.
“Seek a transparent framework for policy design and implementation that balances the government’s revenue goals with the need for a fair and conducive business environment.”
He further urged the government to adopt smarter and more cost-effective alternatives that strengthen tax compliance enforcement rather than imposing blanket excise tax stamps that will unduly burden manufacturers.
“Targeted border enforcement will help curb leakages and smuggling, digital traceability pilots can provide transparent and real-time monitoring of products, while risk-based audits will ensure that compliance efforts are focused where risks are highest.
“MAN strongly urges the Federal Government to exercise caution in introducing a Tax Stamp System in Nigeria. Experiences in the international environment shows that tax stamps often hinder local industry, erode gains in tax simplification, and yield a limited revenue impact.
“We therefore implore the government not to succumb to the proposal to introduce Tax Stamps, instead government should strengthen existing digital fiscal tools and border controls to achieve compliance without imposing undue burdens on industry.”
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