Nigeria’s new excise duties not targeted at local manufacturers, says finance ministry

Nigeria’s ministry of finance said the new excise duty rates recently approved by the government on alcoholic beverages and tobacco were not targeted at local manufacturers

The ministry in a statement released Sunday, June 10 said it was reacting to media reports on the issue, which seem to suggest local manufacturers are affected by the new rates.

The new excise duty rates, which came into effect from Monday, June 4, 2018, according to the statement, seek 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.

“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,” the statement read.

In addition, it said 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 ministry stated, adding that 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.