The Manufacturers Association of Nigeria (MAN) has kicked against the newly released Fiscal Policy Measures for 2023 by the Federal Ministry of Finance, Budget and National Planning, insisting it will put more pressure on manufacturing activity in the country.
In a circular dated 20-Apr-2023 and signed by the Minister of Finance, the Federal Government introduced new Fiscal Policy Measures (FPM) for 2023; this introduced additional taxes on previously approved rates for tobacco, alcoholic beverages, wines, and spirits ranging from 20.0 – 100.0 per cent.
Reacting, Director General of the Manufacturing Association of Nigeria (MAN), Segun Ajayi-Kadir, said the increases in excise tax for 2023 and 2024 as provisioned in the said 2023 Fiscal policy, came as a surprise to stakeholders.
He said the release of the 2023 Fiscal Policy Measures, just over one month to its expected implementation date and the end of the current administration, sends negative signals to the business community locally and internationally with implications for existing and potential investors.
“It is worrisome that the current situation is indicative of inconsistency in Government policy, given that industries that are affected by excise tax administration, already made 3-year strategic plans based on the agreed calendar as scheduled in the roadmap, including domestic and export sales prices, revenue and volume projections, tax burden calculations, etc.
“This, in our opinion, may create credibility issues for the country with existing and potential investors, impacting Foreign Direct Investments (FDI) and the country’s Ease of Doing Business index among other implications.
