In a move to save local beverage industries from going into extinction, the Senate yesterday asked the federal government to suspend the proposed tariff hike for their distillers from the present 20 per cent to 67 per cent “until all the gray areas are cleared with all the stakeholders brought on board in the best interest of the nation’s economy.” The Senate made the appeal during plenary on the strength of a motion sponsored to that effect by Senator Benjamin Uwajumogu (APC, Imo North) and cosponsored by Senator Enyinnaya Abaribe (PDP, Abia South).
It, however, resolved to initiate a stakeholders’ public hearing by referring the motion to the relevant committee for an unfettered discourse between the federal government and the relevant stakeholders with a view to reaching a full understanding of the issues to assist government to take the best action in the overall interest of Nigerians affected by the policy. The federal government, through the Minister of Finance, Mrs. Kemi Adeosun, recently rolled out a proposal for the upward review of excise duty on locally produced beverages. Uwajumogu, in the motion titled: “Urgent Need to Review the Proposed Excise Tariff Increment in Order to Save Local Distillers of Beverages from Looming Extinction,” said “the current excise duty paid by the locally produced beverages sector stands at 20% per cent across board, but under the approved excise duty tariff hike by the federal government, it is fixed at 67per cent; over 300% increase.”
He noted that the “beverages industry which is one of the oldest surviving sectors presently employs about 250,000 Nigerians both directly with an investment portfolio exceeding N420 billion is under real threat of extinction due to the proposed astronomical tariff hike.”
He, therefore, warned that “if this proposed hike is not reviewed, one of the consequences will be the potential loss of at least 250,000 jobs as manufacturers within this sub-sector will be left with no option than to massively lay off workers.
