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.
LEADERSHIP recalls that in 2022 there was an introduction of an excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages in the country. The charge was part of a new policy introduced in the Finance Act, which was signed into law by President Muhammadu Buhari on December 31, 2021, alongside the 2022 Appropriation Bill.
However, it caused a stir among stakeholders.
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.
The director-general of MAN, Segun Ajayi-Kadir, in a statement to LEADERSHIP said: "The association is gladdened by the assurances of the minister that the 2023 Fiscal Policy Guidelines and the reconsideration of the Finance Act 2023 have been concluded and would be released immediately.
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"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.
