The demand was sequel to the adoption of the report of the Senate Committee on Finance.

The committee considered a motion, “The urgent need to review the excise tariff increment in order to save local distillers of beverages from looming extinction” – which was moved by Ben Uwajumogu (APC, Imo North) in May.

He had stated that the current excise duty paid by the locally produced beverages sector stands at 20 per cent across board. But under the approved excise duty tariff hike by the federal government, it is fixed at 67 per cent; a more than 300 per cent increase.


The federal government had in March, rolled out a proposal for the upward review of excise duty on alcoholic beverages and tobacco products.

The approval, according to the former Minister of Finance, Kemi Adeosun, was given by President Muhammadu Buhari, and would take effect from June 4, 2018.

Mrs Adeosun in a statement said the president also granted a grace period of 90 days to all local manufacturers before the commencement of the new excise duty regime.

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She also stated that there would be no increase in excise duty of other locally produced goods and that the new excise duty rates would be spread over a three-year period from 2018 to 2020 in order to moderate the impact on prices of the products.

In the committee’s report, presented by the chairman, John Enoh, it said the discussion with stakeholders should pave the way for consensus on the implementation .

It also said an increment of not more than 50 per cent should be adopted, “as it becomes necessary for the Federal Government to increase the tariff in order to boost revenue as the rate will provide more leniency to the affected manufacturers and give more hope for the survival of local firms”.

It stated that there is need to increase the import duties of foreign alcoholic beverages and tobacco products in order to give local firms more competitive edge.

The Senate urged the government to sensitise and carry along the producers and consumers of alcohol and tobacco products to understand the need for the increase and its advantage in adding to the economic fortunes of the country.

The lawmakers agreed that if the new excise tariff is allowed to be implemented by the government, it will stand at about 500 per cent after the three years incremental period.

It also said if the tariff is fully implemented without review, it is capable of compelling affected companies that cannot stand with the new rate to either shut down or relocate their full operation to neighbouring countries with favourable and flexible taxation policies for the sector.

ManirBK:
Who are the stakeholders? No religion on earth permits drinking of alcohol, even smoking is prohibited as it's not beneficial to our health. I'm not surprise must of the NASS are drunkards, while some own beer parlours.

NaijaRoyelty:


Nigeria is.not an Islamic state

Don't dictate to nobody how to live their lives.

ManirBK:
Are u a drunkard?

NaijaRoyelty:


Your business ?

Like I've said before , Nigeria is not an Islamic state so stop telling people how to live their life.

Total Islamization of Nigeria is one dream that would never come true , so stop wasting your time .

yemmight:
Just like when we used to have a drunken fisherman in Aso rock. They are the same.

ManirBK:
I only know that both Islam and Christianity did not permitted alcohols but unfortunately some are taking it as if its allowed.

ManirBK:
Who are the stakeholders? No religion on earth permits drinking of alcohol, even smoking is prohibited as it's not beneficial to our health. I'm not surprise must of the NASS are drunkards, while some own beer parlours.

NaijaRoyelty:


Taking alcohol is a choice

That Sharia forbids it doesn't mean other religion must do the same .

I'm a Muslim and I take alcohol when necessary

ManirBK:
Which kind consultation?, I am 100% with FG on this very issue. This companies makes billions yet their products only cause more harm than good to Nigerians and you are saying some so-called stakeholders must be consulted before increasing taxes/tariffs to them!

ManirBK:
Which kind consultation?, I am 100% with FG on this very issue. This companies makes billions yet their products only cause more harm than good to Nigerians and you are saying some so-called stakeholders must be consulted before increasing taxes/tariffs to them!