Planned Tariff Hike On Alcoholic Beverages: Coalition Takes Protest to NASS
A coalition of non-governmental organisations comprising the Business Renaissance Group (BRG) and Sustained Development Collective (SDC) have called for the Senate President, Dr Bukola Sarakiâ€™s urgent intervention to reverse the planned increase in excise duty on alcoholic beverages and tobacco products by the federal government.
The group which staged a peaceful protest at the National Assembly (NASS) on Tuesday maintained that the astronomical increase in excise duty was bound to endanger the sector if not reviewed and reversed.
The group displayed various placards with inscriptions such as â€œSupport Local Industries: No to Killer Taxesâ€; â€œSave #Made In Nigeria Wines & Spirits. No Killer Taxesâ€; â€œSenate Save us from Killer Taxesâ€; â€œFG Please Donâ€™t Kill Our Local Businessesâ€; â€œPresident Buhari please save our jobs, #No to The Tax Hikeâ€ among others.
Presenting a letter to be delivered to the Senate President, President of BRG, Mazi Omife Omife, said: â€œWe are calling on the minister of finance to revert the tax increase on wines and spirit. This is because if it is executed it will lead to businesses closing up. It will lead to job losses and thereby aggravate the security situation in the country. If this people are displaced from their jobs, some of them will resort to ugly vices like thuggery, armed robbery, kidnapping and other criminal activities.â€
â€œWe have made every effort to talk to the Minister of Finance and her officials but unfortunately they were not forthcoming. We had a meeting with major stakeholders who wanted to intervene, but still the Minister of Finance or her officials were not forthcoming.
â€œWe had a press conference in Lagos and Abuja and yet nothing has happened that is why we asking the Senate to intervene,â€ Omife said.
The letter was received by Mrs Amina Musa, an officer of the Department of Sergeant At Arms, National Assembly for delivery to Saraki.
The Federal Ministry of Finance recently announced an amendment to the existing tariff, excise duty on locally produced wines, spirits, as well as tobacco products which should take effect from June 4, 2018.
The current excise at 20 per cent for spirits amounts to N31 per litre while the new excise as announced by Mrs Kemi Adeosun amounts to N200 per litre of spirits and N150 for wines. This indicates an increase of over 500 per cent.
Also speaking during the protest, National Secretary, Sustainable Development Collective (SDC), Dr Ike Ikegbunam said: â€œOur point is very clear. There should be a reversal of the tax increase.
The increase in excise duty is affecting our companies adversely. A lot of companies are folding up.
A lot of companies are moving to Ghana and using Ghana as their corporate headquarters. We are talking of foreign investments, of pulling these resources back into Nigeria. You cannot do this when you try to scare investors away with these tax policies. What we are doing is part of our efforts to ensure that sanity prevails. A lot of thing will go wrong unless the issue of this excise duty increase is addressed.â€