Nigerians spent a total of N208bn on alcohol in 2016, according to the latest data from the National Bureau of Statistics (NBS).
A breakdown of the nation’s consumption pattern shows that the South-South zone consumed the most alcohol in the country, with N74.4bn spent on alcohol. This covers the states of Delta, Edo, Bayelsa, Rivers, Akwa Ibom, and Cross Rivers.
The Senate on Tuesday sought the assistance of the Federal Government to halt the implementation of a new excise duty rate on alcohol and tobacco that came into effect in June until all relevant stakeholders are adequately consulted.
The Upper legislative chamber said a pause would give all stakeholders in the beverage and tobacco industries an opportunity to agree on a consensus rate and implementation approach.
The Federal Ministry of Finance came out on Sunday to defend its newly enacted excise duty rates on alcohol and tobacco, saying that they are not targeted at local manufacturers.
In a statement released by the ministry’s Director of Information, Hassan Dodo, it said that contrary to claims in some quarters, the new excise duty rates, which came into effect from June 4, 2018, were not targeted at local manufacturers.
Stakeholders in the food, beverage and tobacco sub-sector have called on the Federal Government to suspend its proposed increase on excise duty rates on alcoholic beverages and tobacco products which is set to go into effect on June 4, 2018.
The group said that it was with deep regret that the government was making plans to raise the excise duty rates at a time industry producers were experiencing declining volumes and contracting margins, noting that the effect of absorbing the cost of the new excise duty regime would be over-whelming on industry players.
The Senate, on Tuesday called on the Federal Government to suspend the planned excise duty increase on locally produced alcoholic beverages set to go into effect on June 4th. The Upper Chamber of the National Assembly said that the increase which would raise the excise duty rate on alcoholic beverages from the current rate of 20% to 67% represents a 300% increase and should be suspended until there is a better understanding of the new policy by all stakeholders in the interest of the national economy.
The National Union of Food Beverage and Tobacco Employees (NUFBTE) has criticised the Federal Government and threatened to go on a labour strike over the planned increase on the excise duty rates for alcoholic beverages and tobacco.
While speaking at a meeting by the organised labour, President of NUFBTE, Lateef Oyelekan, said that more than 20,000 workers are presently employed in the alcoholic and tobacco sector and may lose their jobs if the amendment takes effect.
The International Monetary Fund (IMF) has said that the recently implemented excise duty rates for alcoholic beverages and tobacco products by the Federal Government of Nigeria were too low and instead should be higher to act as “a fail-proof revenue raising strategy.”
The World body is recommending a 100% increase in excise duty be slapped on the affected products to conform to global norms.
The Federal government has signed-off on the implementation of a new excise duty regime on alcoholic beverages and tobacco products as it seeks to raise government’s fiscal revenues.
President Muhammadu Buhari has approved an amendment to the excise tariff rates for alcoholic beverages and tobacco products which are slated to go into effect on 4th June 2018, the Minister of Finance, Mrs. Kemi Adeosun said on Sunday.
The Minister of Finance, Mrs. Kemi Adeosun has recommended increasing excise duty rates on alcohol and tobacco products with implications on their health effects as well as a means of raising revenue.
Adeosun added that her recommendation is in line with the implementation of the ECOWAS common External Tariff (CET), one of the instruments of harmonizing member states to strengthen its Common Market agreed upon on 25th October 2014.
The Akwa Ibom State Government has announced that alcohol consumption in hotels and beer parlours in the state would now attract tax.
This was made known to journalists in Uyo on Saturday by the State’s Commissioner for Finance, Mr. Akan Okon. He said that people who consumed alcoholic drinks would begin to pay a token as tax.
