MAN raises the alarm on looming collapse of soft drinks sector

The Manufacturers Association of Nigeria (MAN) has raised the alarm over the Federal Government’s proposed 20 per cent Ad-valorem Excise Tax on non-alcoholic beverages covering the widely consumed Carbonated Soft Drinks (CSD) segment.

This was made known by the heads of the sectoral group during the weekend in Lagos.

They noted that such a move would spell doom for the sector citing the effect of the prevailing N10 per litre tax on their businesses.

MAN in a statement stressed the N10 litre was manifest in the 8 percent revenue decline as a direct result of excise tax implementation.

It added that the proposed 20 per cent ad-valorem tax introduction would lead to loss of thousands of jobs.

Read also:Nigerians consume N246bn worth of alcoholic, soft drinks in three months

The statement read: “It is projected that the decline will hit 25 per cent by December 2022 if not reviewed. This excludes the cost of write-offs of products produced, excised but not sold.

“This will be catastrophic as thousands of jobs will be affected and the ultimate aim of the government in collecting revenue will be completely defeated. Most certainly, the additional 20 per cent will not only kill the sector but result in the loss of revenue by the Federal Government and a consequential phenomenal loss of jobs by various layers of the Nigerian workforce.”

“The N10 tax is already having devastating effects on the end cost to consumers, considering their poor economic condition; an additional 20 per cent will most certainly kill the sector.”

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