The Manufacturers Association of Nigeria (MAN) has decried the proposed re-introduction of excise duty on non-alcoholic drinks, saying producers could lose up to N1.9 trillion in revenue sales by 2025.
Specifically, the Chairman, Fruit Juice Producers branch of MAN, Mr Fred Chiazor said this while remarking at the MMS Business discourse in Lagos recently.
Speaking on the theme, ‘X-raying the Proposed Excise Duty Regime for Carbonated Beverages in a Recovering Economy,’ Chiazor said 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.
He called for a suspension of the fiscal policy, noting that the proposed excise duty collection would shrink the sector’s contribution to the GDP which currently represents 35 percent 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.
However, 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.
