Home Business New excise duty rates not targeted at local manufacturers – Finance Ministry

New excise duty rates not targeted at local manufacturers – Finance Ministry

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From left: President, Institute of Chartered Accountants of Nigeria, Isma'ila Muhammadu Zakari; Minister of Finance, Kemi Adeosun and Executive Chairman of the Federal Inland Revenue, Tunde Fowler at the ICAN 2018 Annual Dinner Awards held at Eko Hotels and Suites

The Federal Ministry of Finance has stated that state that the new excise duty rates which came into effect last Monday were not targeted at the local manufacturers

The Ministry, in a statement signed the director of Information, Hassan Dodo stated that 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 attention of the Federal Ministry of Finance has been drawn to media reports that the new excise duty rates approved by President Muhammadu Buhari on alcoholic beverages and tobacco were targeted at local manufacturers,’’ the statement said.

‘’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 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.

‘’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 Federal Government remains committed to the industrialization agenda and shall continue to put in place fiscal policy measures to protect local manufacturers and stimulate the growth of the economy.’’