Customs Stops Tax Waivers For Coca-Cola, Pepsi, Firms, Soon

As Nigerian Customs Service makes higher projections in its revenue generation, producers of carbonated drinks in Nigeria may soon lose some comfort as the NCS and Senate seek cancellation of waivers on the companies’ excise duty.
The NCS, directly called for the termination of the tax waivers regime granted local companies producing soft drinks in the country by federal government.
Comptroller General of Customs, Colonel Hameed Ali (rtd), made the call yesterday at the Senate Joint Committee on Finance, and National Planning on the projection of the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF/FSP
He said doing so would boost revenue generation since tariff collection on import would drop in 2021 and beyond due to the trade agreement between Nigeria and neighbouring countries.
Specifically, the Custom’s boss wondered why companies like Coca-Cola, Pepsi, Biggi and other non-alcoholic beverage firms were not paying taxes in Nigeria when they do in other countries where they have operations.
According to him, the defunct Interim National Government of Ernest Shonekan, granted the waivers to the carbonated drinks manufacturers in 1993 to encourage local firms.
He, however, said the policy should no longer be sustained in view of the current economic reality occasioned by the nations dwindling revenue.
His words ”We have been pushing for the expansion of our own excise collection. During the Shonekan regime, excise was stopped for carbonated drinks manufacturers like Coca-Cola.

Nneka Amaechi-Nnadi, Abuja