Senate wants planned increase in tariff on alcoholic beverages suspended
Senators in the Federal Republic of Nigeria want the planned increase on alcoholic beverages and tobacco products suspended.
The federal government had proposed a 500 per cent hike in excise tariff on alcoholic beverages and tobacco products, but the senate on Wednesday directed the government to suspend the implementation.
It advised that the implementation of a new excise tariff rate should not be effected until all relevant stakeholders are carried along and a resolution reached to pave the way for consensus and implementation approach.
This was sequel to the adoption of the report of the Senate Committee on Finance headed by Senator John Enoh (Cross River Central) presented at plenary which considered a motion on “the urgent need to review the excise tariff increment in order to save local distillers of beverages from looming extinction.”
The Senate, however, advised that a tariff hike of not more than 50 per cent should be adopted, “as it becomes necessary for the federal government to increase the tariff rate in order to boost revenue generation as the rate will provide more leniency to the affected manufacturers and give more hope for the survival of the indigenous companies.”
It also resolved that there was serious need to increase the import duties of foreign alcoholic beverages and tobacco products in order to give local indigenous companies more competitive edge.