What Adeosun Told Manufacturers Kicking Against Alcohol, Cigarettes Tax
If you are a manufacturer of Alcoholic beverages and tobacco related products in Nigeria, Nigeria’s finance minister, Kemi Adeosun wants you to know that the new excise duty rates on alcohol and tobacco are not against you.
The finance ministry stated this in a statement signed by the Director of Information, Hassan Dodo on Sunday.
The statement explained that the new excise regime sought to kill two birds with one stone.
First is to raise more money for the government and another is to help reduce the health hazards associated with tobacco-related diseases and alcohol abuse.
“Contrary to claims that the rates were selectively imposed on local manufacturers, there is currently a 60% duty rate imposed on imported alcoholic beverages and tobacco as part of measures by the government to encourage local production and protect local manufacturing industries.
“It should also be noted that beer and stout are currently under import prohibition to protect the industry from unfair competition from foreign brands.
“In addition, other locally excisable products such as non-alcoholic beverages, cosmetics, perfumes, corrugated papers or paper boards and cartons have no excise duties,” the ministry’s statement said.
The ministry also faulted claims that investors were not consulted before the new rates were approved by the Federal Government.
It explained that the approved excise duty rates followed all-encompassing engagements by the Tariff Technical Committee, of which the Manufacturers Association of Nigeria is a member.
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