MAN laments 20% tax, says N409bn loss imminent

MAN laments 20% tax, says N409bn loss imminent

The carbonated soft drinks sub-sector of the Manufacturers Association of Nigeria has knocked the Federal Government over the proposed 20 per cent ad-valorem excise tax on non-alcoholic beverages which covers the widely consumed carbonated soft drinks segment.

The sectoral group disclosed this in a meeting on Thursday, November 17, 2022, in Lagos. According to MAN, such a move would spell doom for the sector as the effect of the prevailing N10 per litre tax regime was already disabling the industry with its biting effects on businesses.

An Industry study on the impact of the prevailing N10 per litre excise tax effect between June and August 2022 showed a  8 per cent revenue decline as a direct result of excise tax implementation. It is projected that the decline will hit –25 per cent by December 2022 if not reviewed.

In a statement, MAN said the study excluded the cost of write-offs of products manufactured, which were excised but not sold.

With the proposed 20 per cent ad-valorem tax introduction, the collapse of the soft drink market was imminent, said the group. MAN further said this would be catastrophic as thousands of jobs could be affected and the ultimate aim of the government in collecting revenue completely defeated.

“Most certainly, the additional 20 per cent will not only kill the sector but result in the loss of revenue by the Federal Government, and a consequential phenomenal loss of jobs by various layers of the Nigerian workforce.’’

The statement added that the sectoral position was laid bare on November 17th by the Soft Drinks Manufacturers Sub-sector of MAN, which accounts for 33 per cent of the entire manufacturing sector in Nigeria.

Check Also

MPC May Keep Interest Rate High, Says Cardoso

Govt Under Pressure To Stop Cybersecurity Levy

  The House of Representatives, Northern Elders Forum and some members of the Organised Private …

Leave a Reply

Your email address will not be published. Required fields are marked *

× Get News Alert