• Tuesday, July 16, 2024
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MAN lauds FG’s halt on proposed excise duty hike

Boosting Nigeria’s tax revenue? Grow the economy, honour the social contract!

The Manufacturers Association of Nigeria (MAN), has commended the Federal Government’s decision to halt the proposed hike in excise duty on alcoholic, non alcoholic beverages and tobacco.

In a statement on Tuesday, Segun Ajayi-Kadir, director general at MAN, said the association is gladdened by the assurances of Zainab Ahmed, Nigeria’s finance, budget and national planning minister that the 2023 fiscal policy guidelines and the reconsideration of the Finance Act 2023 have been concluded and would 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 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,” he said.

He said the halt in the tax increase comes as a huge relief to the members across the federation and will signpost the administration’s support for the sustenance of manufacturing in Nigeria on this score.

“From the foregoing, the association views the government move as one that will encourage our members who are currently struggling with unprecedented low sales, forex squeeze, inadequate electricity supply and multiple taxes and levies from the three tiers of government,” Ajayi-Kadir added.

There had been controversies on the implication of the proposed 20 percent excise tax on Carbonated Soft Drinks sub-sector of the economy.

Manufacturers through a series of advocacy channels warned that the new tax imposed on carbonated drinks and others would be counter-productive and that the government should devise other means of generating revenue rather than inadvertently stifling the productive sector which is already struggling.

“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,” the association said.

Read also: Developments in Nigerian Tax Law 2022

The MAN statement also revealed that the association received the understanding of government on the introduction of 0.5 percent import surcharge, which is meant to fulfill Nigeria’s obligations to the continental agreement in the implementation of Africa Continental Free Trade Area 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.

“This move will reassure members of the administration’s respect for stakeholder’s 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,” it said.