Manufacturers Association of Nigeria (MAN) has condemned President Muhammadu Buhari’s tenure of introducing tax on soft drinks. Information Guide Nigeria

The body warned that excise duty will lead to 0.43 per cent contraction in output and 40 per cent drop on industry revenues in the next five years. DAILY POST reports.

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Mrs Zainab Ahmed, the Minister of Finance, declared the imposition of N10 per litre on all non-alcoholic, carbonated and other beverages.

Also, Segun Ajayi-Kadir, MAN Director-General, expatiated that beverages contributed 38 per cent of the manufacturing sector to Gross Domestic Product (GDP).

The DG added that as seen from previous analysis, excise affects production outputs, revenues and profits. jamb results

“This causes companies to pursue cost-cutting measures to reduce the effect of diminishing revenue and profits by reducing employee salaries or retrenchment”.

Ajayi-Kadir posited that the tax estimated to generate N81billion between 2022-2025 would not be enough to compensate the government’s revenue losses in other areas.

“The effect of reduced industry revenue on government revenues is estimated to be up to N142billion contraction in Value Added Tax (VAT) raised by the sector, and N54billion Corporate Income Tax reduction between 2022 to 2025.”

“Nigeria is the 6th highest consumer of soft drink, but per capita consumption is low. Excise will easily reduce production capacity causing manufacturers to struggle to meet investor”.

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