Stakeholders Knock FG Over Proposed Excise Tax

Stakeholders and business executives in small scale and manufacturing sector have faulted the Federal Government over the proposed 20 per cent ad-valorem excise tax on non-alcoholic beverages which covers the widely consumed carbonated soft drinks area.
They stated that such a move would spell doom for the sector as the effect of the prevailing N10 per litre tax regime was already disabling the industry with its biting effects on businesses.
Speaking while interacting with airport correspondents on Monday on the matter, a Port Harcourt based business executive, Mrs Matilda Chigozie, said such tax, when  implemented, will add to the already untold hardship both to the consumers and dealers.
According to her, the impact of the prevailing N10 per litre excise tax, so far monitored, has negatively impacted on their business, noting that the effect of it, between June and August in 2022 showed  8 per cent revenue decline as a direct result of excise tax implementation.
She said if nothing is done fast, and given the rate of inflation in the country, it is projected that the decline will likely hit 25 per cent by December 2022.
On his part, Francis Uzoma, who is into soft drinks manufacturing, and a member of the Manufacturers Association of Nigeria (MAN), said with the proposed 20 per cent ad-valorem tax introduction, the collapse of the soft drink market was imminent.
He said this would be catastrophic as thousands of jobs could be affected and the ultimate aim of the government in collecting revenue completely defeated.
“Most certainly, the additional 20 per cent will not only kill the sector, but also result in the loss of revenue by the Federal Government, and a consequential phenomenal loss of jobs by various layers of the Nigerian workforce”, Uzoma said.
He, however, urged the Federal Government to reconsider its stand on the matter, in order not to add more hardship to the business community, in the quest to raise revenue

By: Corlins Walter