Manufacturers to lose N1.9trn in three years over new excise duty -MAN

The Manufacturers Association of Nigeria (MAN) has decried the proposed re-introduction of excise duty on non-alcoholic drinks, saying producers could lose up to N1.9 trillion in revenue sales by 2025.

Specifically, the Chairman, Fruit Juice Producers branch of MAN, Mr Fred Chiazor said this while remarking at the MMS Business discourse in Lagos on Tuesday

Speaking on the theme, ‘X-raying the Proposed Excise Duty Regime for Carbonated Beverages in a Recovering Economy,’ Chiazor said the amount indicated a 39.5 per cent loss due to the imposition of the new taxes with a concomitant impact on jobs and supply chain.

He called for a suspension of the fiscal policy, noting that the proposed excise duty collection would shrink the sector’s contribution to the GDP which currently represents 35 per cent of manufacturing.

READ ALSO: Manufacturers spent over N143bn on fuelling generators in two years

“Government can lose up to N197 billion in Value Added Tax (VAT), EIT fund and Collective Investment Trust (CIT) revenues occasioned by the drop in industry performance,” he said.

Also, Chiazor said following the current tough economic situation in the country, the government should introduce fiscal palliatives and tax rebates instead of introducing excise duty collection.

However, the Comptroller-General of the Nigeria Customs Service (NCS), Col. Hammed Ali (Rtd), said that the introduction would trigger a significant revenue rise from excise duty when brought under excise control.

He said this was due to the wide production and consumption of carbonated non-alcoholic drinks locally.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now