{"id":132485,"date":"2022-01-10T13:10:02","date_gmt":"2022-01-10T12:10:02","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=132485"},"modified":"2022-01-10T13:10:02","modified_gmt":"2022-01-10T12:10:02","slug":"suspend-n10-litre-excise-duty-on-carbonated-drinks-neca-tells-fg","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2022\/01\/10\/suspend-n10-litre-excise-duty-on-carbonated-drinks-neca-tells-fg\/","title":{"rendered":"Suspend N10\/litre excise duty on carbonated drinks, NECA tells FG"},"content":{"rendered":"<p>The Nigeria Employers&#8217; Consultative Association (NECA) has stated that the federal government should suspend the new excise duty of 10\/litre on carbonated drinks.<\/p>\n<p>This was contained in a statement released during the weekend by NECA.<\/p>\n<p><span data-preserver-spaces=\"true\">The association urged the government to consider the interest of Nigerians and the economy.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The association is the umbrella body of all employers\u2019 groups in Nigeria.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The group asked that the government continue to support the manufacturing industry to attain full recovery after the onslaught of the <a href=\"https:\/\/www.withinnigeria.com\/news\/2022\/01\/10\/covid-19-nigeria-records-537-fresh-infections-in-7-states-fct\/\">COVID-19 pandemic<\/a>.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">NECA stated that the contents of the 2022 Appropriation Act (budget) and Finance Act 2021 could lead to challenges \u2014 by increasing the number of industrial actions, job losses and rising unemployment.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWe may recall that in 2009 during the global financial crisis, excise duties on carbonated drinks were suspended to aid the sustainability of businesses. We make bold to say that the economic situation which necessitated the suspension of the excise in 2009 has not abated, but rather, worse. In fact, businesses currently face greater hardship than what obtained in 2009,\u201d the statement reads.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThus, the introduction of the tax will be counter-productive as it will lead to further stifling of businesses in the manufacturing industry. It will result in reduction of the purchasing power of the masses as any increase in price will likely be passed to the consumers.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cGlobally, at a time like this, governments continue to provide incentives for industries to speed up recovery from the shocks of the COVID-19 pandemic, inflation and escalating costs.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cNigeria cannot afford to be doing the exact opposite as manufacturers, across all product segments need a respite, especially in the light of the unprecedented increase in production and operating costs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cIt is instructive to note that manufacturers in the country have been contending with the dislocations caused by the pandemic and the recession that followed. They are also facing serious crises resulting from liquidity challenges in the foreign exchange market, which is impacting adversely on the cost of production, sales, turnover, profitability and shareholder value.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cIn addition, they are confronted with intense pressure arising from numerous structural bottlenecks that are creating sustainability challenges for investors, especially those in the SME segment. Further, there are concerns with the significant spike in the cost of raw materials, investment capital, high import duty, energy, transportation and logistics\/shipping, among others.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cRather, the government should continue to support and promote the industry to attain full recovery after the onslaught of the pandemic and position it to further accommodate the teeming unemployed Nigerians, particularly the youths.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The group added that an agile business environment is needed for the private sector to participate and support government\u2019s development plan (2021-2025).<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cA further hike in Value Added Tax, VAT, would only increase the revenue of government temporarily, as this would further translate to a reduction in consumption for some items, loss of jobs to workers in the production value chains of those items as well as negatively impact overall government revenue projections, etc,\u201d the statement added.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cAs we aligned our thoughts with the aspiration of the current administration in the removal of fuel subsidy, as the current subsidy regime is not sustainable, with the subsidy payment hovering around N150 billion monthly and around N2 trillion annually, with the removal of subsidy, the funds that would be saved could help address the wide infrastructural deficits and other gaps in the country.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWe urge the government to urgently initiate a deepened engagement with critical stakeholders including employers and organised labour with the view of arriving at a more realistic strategy to cushion the effects of the subsidy removal on workers, employers and the generality of Nigerians. Past efforts at providing palliatives have proved to be cosmetic, shallow and unsustainable.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWe state that fuel subsidy removal based on the argument of international oil prices and other parameters without considering the context of those climes will be unrealistic within the context of our environment.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Nigeria Employers&#8217; Consultative Association (NECA) has stated that the federal government should suspend the new excise duty of 10\/litre on carbonated drinks. This was contained in a statement released during the weekend by NECA. The association urged the government to consider the interest of Nigerians and the economy. The association is the umbrella body [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":131131,"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":[26749,19,27180,27179],"class_list":["post-132485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-carbonated-drinks","tag-covid-19","tag-n10-litre-excise-duty","tag-nigeria-employers-consultative-association-neca"],"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>Suspend N10\/litre excise duty on carbonated drinks, NECA tells FG<\/title>\n<meta name=\"description\" content=\"The Nigeria Employers&#039; 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