No to 500% Excise Duty Hike in Alcohol – Distillers association
The Distillers and Blenders Association of Nigeria (DIBAN) has called on the federal government to halt the implementation of the new excise duty hike and hold genuine consultation with all stakeholders in the domestic wines and spirits space in order to prevent unemployment, as well as ensure the continued survival of the wine and spirits sector.
It added that the association rejected in totality the highly punitive and selective astronomical hike in duty, describing it as a purely International Monetary Fund (IMF) agenda being camouflaged as a health concern.
This was disclosed at the special media briefing by DIBAN and the Manufacturers Association of Nigeria (MAN) on the clarification of issues on and about excise duty on wines and spirits at the MAN House in Lagos.
Speaking at the briefing, the Chairman of DIBAN, Chief Patrick Anegbe, described the new astronomical hike in excise duty being imposed on the domestic wine and spirit industry as an attempt by the minister to foist an IMF sponsored agenda on Nigeria, saying it would further compound the hardship of already impoverished Nigerians.
The chairman explained that the new duty being approved for implementation by the Minister of Finance, translates to an increase in duty from current average of N30 per litre to N150 per litre in the first year and N200 per litre subsequently.
Patrick further added that this translates to an increase from current average duty of N270 to N1350 per case (carton) in the first year and N270 to N1800 per case (carton) from second year.
“We are particularly worried that the jobs of over 25,000 Nigerians plus over 250,000 connected SMEs staffs are being threatened by this hike. If the implementation of the new duty hike is allowed to proceed, we are worried about the obvious job losses that will result from low demand of our products.”