Business Don Reject Drink Tax Hike

Members of di Organised Private Sector of Nigeria (OPSN) don tell di Federal Government make dem withdraw di proposed amendment to di Customs, Excise and Tariff Bill. Dem warn say di move fit scatter President Bola Tinubu fiscal reform plan and weak Nigeria tax system. Di OPSN, wey include di Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture; Manufacturers Association of Nigeria; Nigeria Employers’ Consultative Association; National Association of Small and Medium Enterprises; and National Association of Small Scale Industrialists, during public hearing on Thursday, beg di National Assembly make dem keep di current excise rates for non-alcoholic drinks. Dem talk say di amendment no follow government fiscal reform direction, get plenty legal and administrative wahala, and fit hurt jobs, investment, and industrial stability. Dem yan say steep excise increase or new levy go push up business cost, increase retail price, reduce VAT and Company Income Tax collection, and scatter beverage value chain wey dey employ plenty people and contribute big non-oil revenue.

Di OPSN also talk say non-alcoholic drinks sector dey support 1.5 million jobs, dey drive backward integration under Nigeria Sugar Master Plan II, and dey contribute 40–45% of government tax revenue, yet dem dey operate under thin margin and economic pressure. Dem criticise National Assembly for dey push di bill without coordinating with Ministry of Finance, Presidential Fiscal Policy & Tax Reform Committee, FAAC and other institutions, wey fit weaken di administration ease-of-doing-business objectives. Meanwhile, pressure group CAPPA still dey push for hike of SSB tax from N10 to N130 per litre, claiming say 1,200% increase go help prevent noncommunicable disease. Di OPSN yan say dem open to further talk with lawmakers, fiscal authorities and civil society to make sure future excise adjustments go support investment, jobs, and stable revenue.