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Local manufacturers not targets of new excise duties  – Finance Ministry

 
By Tony Obiechina
The Federal Ministry of Finance has debunked reports that the new excise duty rates approved by President Muhammadu Buhari on alcoholic beverages and tobacco were targeted at local manufacturers.
A statement from the the Ministry made available to Daily Asset in Abuja on Sunday said “the new excise duty rates which came into effect from Monday,  June 4, 2018, were not targeted at the local manufacturers.”
The statement which was signed by Mr.  Hassan Dodo, Director of Press in the Ministry, said “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.”
“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 added.
According to the statement, other locally excisable products such as non-alcoholic beverages, cosmetics, perfumes, corrugated papers or paper boards and cartons have no excise duties.
The ministry further clarified 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, adding that  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”, it posited.

 

 

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