Nigeria May Reconsider New Alcohol Tax
Nigeria recently increased tariffs on alcohol and cigarettes, and manufacturers are not smiling about it.
They are calling for review, and the government appears to be listening.
The Minister of Labour and Employment, Sen. Chris Ngige assured the manufacturers that the federal government will review the newly introduced 500 per cent excise duty on locally produced alcoholic beverages.
Ngige disclosed this recently in Abuja while responding to a call by leaders of the National Union of Food, Beverage and Tobacco Joint Employers and Workers Association (NUFBTJEWA) who were in his office on a Save Our Soul (SOS) mission.
The Minister said the Economic and Recovery Growth Plan (ERGP) of the government was partly tailored towards job creation rather than losses, saying that the Executive Order No. 1 and 4 are for job creation as well as ensuring that jobs created were done by the locals.
According to him, “You have written to the federal government through me that the increase in excise duty on alcohol and beverages will create job losses because once you add a new cost and pass it on, there will be consumer resistance, resulting in low patronage whereas the products coming from overseas that are being smuggled in which are cheap, will take over the market. It is a statement of fact.
“I have passed your complaints and luckily we have a listening President who wants the good of all Nigerians. He will definitely ask the Minister of Finance and the economic management team to review the tariff.
“We cannot afford to create poverty and job losses here while promoting abundant jobs in other countries. Job losses are not part of this government and will not support the 500 per cent tariff increase.”
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