The manufacturers under the aegis of the Manufacturers Association of Nigeria (MAN) in a statement signed by the Director-General, Segun Ajayi-Kadir, noted that the federal government’s decision has confirmed the administration’s support for the sustenance of manufacturing in Nigeria.
The recent decision to suspend the ₦10 excise duty charges on beverages has put to rest, months of speculations in the Nigerian manufacturing sector as different stakeholders have waited on the FG to bow to pressure and rescind its position on the matter.
The FG had in 2022, signed the finance act into law alongside the 2022 Appropriation Bill, in a bid to introduce and give solid footing to the policy which would see manufacturers in the beverage sector part with the excise duty charges.
MAN had warned that the move to impose a tax on carbonated drinks and others would be counter-productive to the nation’s economy, and the manufacturing sector most especially as it has currently been brought to its knees due to other economic issues like huge import fees and dollar scarcity.
“Still grappling with a recent increase in line with a three-year roadmap, the proposed increase in excise on beer, wines and spirits, tobacco and non-alcoholic beverages in 2023, became another nightmare to a sector gasping for survival amidst evident setbacks occasioned by naira scarcity, forex crunch, infrastructure deficit but to mention a few,” Ajayi-Kadir noted.
The MAN DG also noted that the issues surrounding the proposed tax increment had prompted the group to pay a courtesy visit to the Minister of Finance, Budget and National Planning, Zainab Ahmed.
Ajayi-Kadir said the Minister confirmed the FG's interest in the manufacturing sector adding 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 added