Relief As FG Halts Planned Raise In Excise Duty On Beverages

The Manufacturers Association of Nigeria (MAN) has expressed relief following the decision of the federal government to halt the proposed increase in excise duty on alcoholic, non-alcoholic beverages and tobacco, adding that this is a huge relief to manufacturers across the country.

The suspension of the excise duty was made known in a courtesy visit and presentation to the minister of finance, budget and national planning, Zainab Ahmed, by a delegation of MAN.

Also, another increase was proposed by the federal government to raise excise duty on alcoholic, non-alcoholic beverages and tobacco. This, the minister of finance told the association, has been put on hold.

The delegation led by the MAN president, Otunba Francis Meshioye, had its concerns allayed.

The minister reassured the delegation of government’s commitment to the wellbeing of the manufacturing sector and the concerned sector in this instance.

“In specific terms, the minister 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.

“This comes as 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.”

He explained that MAN also received the understanding of government on the introduction of 0.5 per cent 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.

He added the federal government’s move will encourage its 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.

“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 government meaningfully on matters bordering on the nation’s economic prosperity, we look forward to improved performance of the manufacturing sector and the economy,” he said.