Members in the soft drink sub-sector of the Manufacturers Association of Nigeria (MAN) kicked against the increased tax levy on its company.
It then asked the national assembly to shield their businesses from imminent collapse over the N10/litre excise duty tax levied on the industry.
The manufacturers said this in Abuja with the national assembly leadership.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
The Nigerian government had introduced an excise duty of N10 per litre on all non-alcoholic, carbonated, and sweetened beverages.
The tax was part of the 2022 Finance Act signed into law by President Muhammadu Buhari on December 31, 2021.
Meanwhile, Segun Apata, Chairman of the Nigerian Bottling Company Limited, told the national assembly that the tax burden could lead to the sector’s collapse.
Apata said:
“We have come to you that the sector is about to collapse. We don’t want to go into the public to announce this is happening to us without placing it before you as leaders of this country.
“The finance act imposes an excise tax on all non-alcoholic beverages. In our sector, the taxes we pay — company tax, VAT, education tax — are over N300 billion.”
The Senate President, Ahmed Lawan, responding to their summit, said the national assembly would continue to shield businesses in the country and address the N10 per litre excise duty on carbonated drinks.
Lawan said:
“I have listened to your submissions. I assure you that in everything that we do as a government an administration, we do so to promote, support, protect and foster businesses in our country.
“You are the owners of the businesses. You invested in the soft drink industry in Nigeria.
“But Nigerians are the beneficiaries because, in addition to drinking the soft drink, our citizens also get jobs, and for those reasons, it is always at the forefront of our considerations and focuses that we must enhance the business environment in Nigeria and create ease of doing business in Nigeria.”
Lawan stated the country could not afford to lose businesses to its competitors in a competitive environment.
Stating that NBC has been in Nigeria for the past 70 years, Lawan said it had provided companies like NBC the opportunity to flourish and have a symbiotic relationship with the country.
He said:
“While you are making profits from your business, we are also getting jobs and other benefits. I want to assure you that when the Finance Act 2022 was passed into law, we did so unconsciously, trying to address the issues, not trying to overburden your businesses.”
Top officials of Seven-Up Bottling Company and Rite Foods, among others, were present at the event.
