{"id":130557,"date":"2022-01-06T13:22:23","date_gmt":"2022-01-06T12:22:23","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=130557"},"modified":"2022-01-06T13:37:34","modified_gmt":"2022-01-06T12:37:34","slug":"man-condemns-new-tax-on-carbonated-drinks","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2022\/01\/06\/man-condemns-new-tax-on-carbonated-drinks\/","title":{"rendered":"MAN condemns new tax on carbonated drinks"},"content":{"rendered":"<p>The Manufacturers Association of Nigeria (MAN) has condemned the introduction of excise duty on all non-alcoholic, carbonated and sweetened beverages.<\/p>\n<p>This was made known on Wednesday by MAN director-general, Segun Ajayi-Kadir while<span data-preserver-spaces=\"true\">\u00a0speaking with journalists in Lagos.<\/span><\/p>\n<p>Recall that minister of finance, budget and national planning, Zainab Ahmed on Wednesday announced the new policy during<span data-preserver-spaces=\"true\">\u00a0the public presentation of the 2022 budget.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">With the policy, the prices of carbonated drinks may spike across the country.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Commenting on the development, Ajayi-Kadir said the new excise duty would cause a 0.43 percent contraction in output and about 40 percent drop in total industry revenues in the next five years.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He explained that food and beverages contributed the highest at 38 percent of the total manufacturing sector quota to the nation\u2019s gross domestic product (GDP).<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He added that the sector comprised 22.5 percent of manufacturing jobs and generated more than 1.5 million jobs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cOne is particularly worried about the ripple effect on the introduction of the excise, despite strenuous evidence-based advice to the contrary,\u201d NAN quoted him as saying.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThis will have an unpleasant impact on employment, households and consumers.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cAs seen from previous impact analysis, excise affects production outputs, revenues and profits.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThis causes companies to pursue cost-cutting measures to reduce the effect of diminishing revenue and profits by reducing employee salaries or <a href=\"https:\/\/www.withinnigeria.com\/news\/2022\/01\/06\/fed-govt-sets-to-sack-workers\/\">retrenchment<\/a>.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cSo, this excise would certainly cast a sunset to this performance.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The director-general stated that the revenue aspirations of the government in introducing the new tax may not be justified in the long run.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He noted that the excise estimated to generate N81 billion between 2022-2025 would not be sufficient to compensate the corresponding government\u2019s revenue losses in other taxes from the group.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cFor instance, the corresponding effect of reduced industry revenue on government revenues is estimated to be up to N142 billion contraction in value-added tax (VAT) raised by the sector and N54 billion corporate income tax reduction between 2022 to 2025.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThis is not to mention the potential negative impact on manufacturers\/supply chain.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cNigeria is the 6th highest consumer of soft drink, but per capita consumption is low.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Ajayi-Kadir also said the new excise duty would \u201ceasily reduce production capacity\u201d, causing manufacturers to struggle to meet investor commitments.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to him, this would make investors take their investments to other countries.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cA decrease in production levels or ability to purchase raw materials as a result of the introduction of excise tax will result in reduced profits for the supply chain players in the non-alcoholic beverage sector,\u201d he added.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWhat is not realized by many is that excise begets high production costs which in turn adversely affect production levels and intimately results in dwindling profits.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThis will grossly impact the small and emerging business owners in the non-alcoholic beverage sector.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Manufacturers Association of Nigeria (MAN) has condemned the introduction of excise duty on all non-alcoholic, carbonated and sweetened beverages. This was made known on Wednesday by MAN director-general, Segun Ajayi-Kadir while\u00a0speaking with journalists in Lagos. Recall that minister of finance, budget and national planning, Zainab Ahmed on Wednesday announced the new policy during\u00a0the public [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":130155,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[26749,495,26811,15406,958],"class_list":["post-130557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-carbonated-drinks","tag-man","tag-new-tax","tag-vat","tag-zainab-ahmed"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>MAN condemns new tax on carbonated drinks<\/title>\n<meta name=\"description\" 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