MAN laments 20% tax, says N409bn loss imminent

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The proposed 20% excise tax on non-alcoholic beverages which will cover the widely consumed carbonated soft drinks segment announced by the Federal Government has been condemned by the carbonated soft drinks sub-sector of the Manufacturers Association of Nigeria.

The sectoral group disclosed this in a meeting on Thursday, November 17, 2022, in Lagos.

According to MAN, such a move would spell doom for the sector as the effect of the prevailing N10 per litre tax regime was already disabling the industry with its biting effects on businesses.

According to the group, with the proposed 20% ad-valorem tax introduction, the collapse of the soft drink market was imminent.

In a statement, MAN said the study excluded the cost of write-offs of products manufactured, which were excised but not sold.

MAN further said this would be catastrophic as thousands of jobs could be affected and the ultimate aim of the government in collecting revenue completely defeated.

“Most certainly, the additional 20% will not only kill the sector but result in the loss of revenue by the Federal Government, and a consequential phenomenal loss of jobs by various layers of the Nigerian workforce.’’

The statement added that the sectoral position was laid bare on November 17th by the Soft Drinks Manufacturers Sub-sector of MAN, which accounts for 33% of the entire manufacturing sector in Nigeria.




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