The Manufacturers Association of Nigeria is asking the Federal Government to clarify the increased excise taxes on tobacco and alcoholic beverages that are included in the 2023 Finance Act.
Francis Meshioye, the president of MAN, praised President Bola Tinubu for postponing the implementation of several new taxes included in the Finance Act in an exclusive interview with The PUNCH.
According to him, there is still some ambiguity around the government’s stance on the excise tax on alcoholic beverages and tobacco goods.
He said, “About the excise tax increase on alcoholic beverages and tobacco products. It is not clear whether this has been suspended. It was mentioned by Alake that the President was conscious of this, but he did clarify whether this would be suspended. Our prayer has been that this should be totally suspended.”
According to Meshioye, there was a plan for how the increase would be implemented, and the manufacturers had the previous administration’s assurance that they would follow the plan exactly as agreed.
He added, “But all of a sudden, we find that this is not the case, that the Finance Act introduced an increase. This is very astonishing to us. We plead that if this part of what is being suspended by this Executive Order, we want it to be very clear so that our members will not have any problems in compliance and that there would be no threats from any other government agencies, especially Customs.
“If otherwise, I want to use this medium to plead with the President to suspend it totally because the roadmap stipulates a gradual increase in excise duty. What I want the president to do is evaluate the impact of the increase already meted, which has been passed on to the consumers. How are they reacting to it? What does it mean to them? This is our plea to the President. He should engage the stakeholders. We are willing to dialogue with the administration and see how we can support the economy without jeopardising the interest of the manufacturers.”