The Manufacturers’ Association of Nigeria has called on the Federal Government to reverse the recent increase in the excise duty for alcohol and tobacco.
The President of MAN, Dr Frank Jacobs, who addressed journalists in Lagos on Wednesday, said that if the government goes ahead to implement the proposed hike, the firms producing the products will shut down and increase job losses.
Speaking on the association’s stand on the African Continental Free Trade agreement, Jacobs noted that the association was still in talks with the government on the issue.
“During the last presidential engagement forum, I talked about the impact of this excise duty increase on the manufacturing sector. I made it clear that if they go ahead and implement that policy, within the three years when that policy will be in full force, many of the companies that are involved in those products must close shops.”
Due to the need to raise revenue, the Federal government had on March 11 approved an amendment to the excise tariff rates for alcoholic beverages and tobacco products, to come into effect on June 4, 2018.
Minister of Finance, Mrs Kemi Adeosun, had stated that President Muhammadu Buhari had given a 90-day period of grace to manufacturers of the affected products before the new duty regime would go into effect.
She said the new excise duty rates would be spread over a three-year period from 2018 to 2020 in order to reduce the impact on the prices of the products.
According to the minister, the new tariff was the result of an all-inclusive meeting between the Tariff Technical Committee of the Federal Ministry of Finance and key industry stakeholders.