New excise duty rates not targeting local manufacturers – FG
By Federal Government on Sunday said the new excise duty for tobacco and alcoholic beverages that took effect on June 4, is not targeted at local manufacturers.
Federal Ministry of Finance, apparently reacting to some section of the media reports that the new excise duty rates approved by President Muhammadu Buhari on alcoholic beverages and tobacco were targeted at local manufacturers, said the reports were misguided.
The Federal Ministry of Finance in a statement issued by Hassan Dodo, the director of information, said, “The new excise regime seeks 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.”
The ministry clarified in the statement, “Contrary to claims that the rates were selectively imposed on local manufacturers, there is currently a 60 per cent duty rate imposed on imported alcoholic beverages and tobacco as part of measures by the Government to encourage local production and protect local manufacturing industry.”
It also pointed out that beer and stout were currently under import prohibition to protect the industry from unfair competition from foreign brands.
According to the statement, other locally excisable products such as non-alcoholic beverages, cosmetics, perfumes, corrugated papers or paperboards and cartons have no excise duties.
The ministry also clarified further that 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 Federal Government, the statement assured, remains committed to the industrialisation agenda and shall continue to put in place fiscal policy measures to protect local manufacturers and stimulate the growth of the economy.
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