The Manufacturers Association of Nigeria (MAN) has said the proposed re-introduction of excise duty collection on non-alcoholic drinks will see producers of the items lose up to N1.9 trillion in revenue sales.
Chairman, Fruit Juice Producers branch of MAN, Mr Fred Chiazor, made this known at the MMS Business discourse in Lagos on Tuesday.
Chiazor added that the loss in revenue sales would be for three years between 2022 and 2025.
He discussed the theme: ‘X-raying the Proposed Excise Duty Regime for Carbonated Beverages in a Recovering Economy’.
He added that the amount indicated a 39.5 per cent loss due to the imposition of the new taxes with a concomitant impact on jobs and supply chain businesses.
He called for a suspension of the fiscal policy, even as it noted that the proposed excise duty collection would shrink the sector’s contribution to the GDP which currently represented 35 per cent of manufacturing.
“Government can lose up to N197 billion in Value Added Tax (VAT), EIT fund and Collective Investment Trust (CIT) revenues occasioned by the drop in industry performance,” he said. He argued that the current tough economic situation in the nation should see the government introduce fiscal palliatives and tax rebates instead of introducing excise duty collection.
Also, the Comptroller-General of the Nigeria Customs Service (NCS), Col. Hammed Ali (Rtd), said that the introduction would trigger a significant revenue rise from excise duty when brought under excise control.
Ali said this was due to the wide production and consumption of carbonated non-alcoholic drinks locally.
Ali, who was represented by the Controller, Lagos Industrial Command, Comptroller Monica Shaahu, presented a paper, titled, “Merits and Demerits of Excise Duty in a COVID-19 Recovering Economy”.
