The Manufacturer Association(MAN) has detailed what the new N10 per litre excise duty on carbonated, and non-alcoholic drinks means for the manufacturing industry and Nigerians, IgbereTV reports.
In a report ‘key considerations against excise on non-alcoholic beverages’, MAN explained that the new law would be counterproductive and lead to revenue loss for the government.
According to MAN, from 2022 to 2025 the federal government might collect N81bn from the excise duty, but lose N197bn within the same period from other taxes, such as VALUE added tax and Company Income Tax from the manufacturers of soft drinks.
The report added that introducing excise duty would cause the beverage sub-sector of the food and beverage industry to lose up to N1.9tn in sales revenue between 2022 -2025, due to the imposition of the new taxes with simultaneous adverse effects on jobs and supply chain businesses.
Speaking further on the report, the Director-General of MAN, Segun Ajayi-Kadir said, “I would like to say that the introduction of excise duty of N10/litre on non-alcoholic, carbonated and sweetened beverages, despite its potential overwhelming negative impact is rather unfortunate.
