New Excise Duty: FG Denies Targeting Local Manufacturers
BY EDMOND ODOK, ABUJA – The Federal Ministry of Finance has assured that the new excise duty rates on alcohol and cigarettes are not targeted at destroying local manufacturers.
According to the Ministry, the purpose of introducing the rates regime, which began effective on June 4, is “to achieve a dual benefit of raising the Government’s revenues to support the nation’s growth and reducing the health hazards associated with tobacco-related diseases and alcohol abuse.”
A statement in Abuja by the Director of Information, Federal Ministry of Finance, Mr Hassan Dodo, said that; “Contrary to claims that the rates are selectively imposed on local manufacturers, there is currently a 60 per cent duty rate imposed on imported alcoholic beverages and tobacco.”
Dodo also said that; “This is part of measures by the government to encourage local production and protect local manufacturers”, adding; “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 statement said.
It further said; “We wish to clarify that the approved excise duty rates followed all-encompassing engagements with key industry stakeholders by the Tariff Technical Committee (TTC), of which Manufacturers Association of Nigeria (MAN) is a member. The stakeholders’ engagements contributed to the final recommendation”
The Director, who expressed government’s resolve to achieve its industrialisation agenda, said necessary fiscal policy measures would be put in place to protect local manufacturers as well as stimulate the nation’s economic growth.
In March 2018, the President had approved excise duties raise on alcohol and tobacco with the new rates for cigarette moving incrementally from N20 per pack of 20 sticks in 2018; N40 per pack of 20 sticks in 2019; and N58 per pack of 20 sticks in 2020.
Also, beer and stout now attract 0.30k per centilitre in 2018 and 0.35k per centiliter each in 2019 and 2020 with wines witnessing N1.25k per centiliter in 2018 and N1.50k per centiliter each in 2019 and 2020.