MAN hails suspension of beverages, tobacco excise duty hike

The Manufacturers Association of Nigeria has hailed the Federal Government’s decision to halt the proposed increase in excise duty on alcohol, non-alcoholic beverages and tobacco.

It further praised the government for allowing the 2022-2024 Federal Government Sectoral Roadmap to run its full course.

This was contained in a statement signed by the Director General of the association, Segun Ajayi-Kadir, and made available to our correspondent on Tuesday.

The duty charge was part of a new policy introduced in the Finance Act, which was signed into law by the President Muhammadu Buhari in December 2021, alongside the 2022 Appropriation Bill.

According to the Minister of Finance, Budget and National Planning, Zainab Ahmed, the new sugar tax was introduced to raise excise duties and revenues for health-related and other critical expenditures in line with the 2022 budget priorities.

MAN warned that a new tax imposed on carbonated drinks and others would be counter-productive and that government should devise other means of generating revenue rather than inadvertently stifling the productive sector which is already struggling.

It noted that a major setback that plagued the productive sector in 2022 was the introduction of an excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages in the country..

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