The new excise duty rates approved by President Muhammadu Buhari on alcoholic beverages and tobacco are not targeted at local manufacturers, the Federal Ministry of Finance has said.
In a statement issued on Sunday, the ministry explained 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 ministry, in the statement signed by the Director of Information, Hassan Dodo, debunked claims that the rates were selectively imposed on local manufacturers, stating that 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.
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“It should also be noted that beer and stout are currently under import prohibition to protect the industry from unfair competition from foreign brands,” the statement added.
The ministry further stressed that other locally excisable products such as non-alcoholic beverages, cosmetics, perfumes, corrugated papers or paper boards and cartons have no excise duties.
It also explained 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 ministry emphasised the Federal Government’s commitment 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.
