ABUJA-- The new, higher rates of excise duty imposed on alcohol and cigarettes, which came into effect on June 4, are not aimed at destroying local manufacturers, says Hassan Dodo, the Director of Information at the Federal Ministry of Finance.
He said in a media statement here Sunday that the purpose of introducing the new rates of duty was to increase government revenue. Contrary to claims that the rates are selectively imposed on local manufacturers, there is currently a 60 per cent duty rate imposed on imported alcoholic beverages and tobacco," he added.
This is part of measures by the government to encourage local production and protect local manufacturers.
It should also be noted that beer and stout are currently under import prohibition to protect the industry from unfair competition from foreign brands.
In addition, other locally excisable products such as non-alcoholic beverages, cosmetics, perfumes, corrugated papers or paper boards and cartons have no excise duties."
Dodo stated that the approved excise duty rates followed all-encompassing engagements with key industry stakeholders by the Tariff Technical Committee (TTC), of which the Manufacturers Association of Nigeria (MAN) is a member.
Dodo also reiterated the Federal Government's commitment to achieving its industrialzsation agenda and added that the government would continue to put in place fiscal policy measures to protect local manufacturers and stimulate the growth of the economy.
Source: NAM NEWS NETWORK