The Manufacturers Association of Nigeria (MAN) has expressed concerns over the possible introduction of a Tax Stamp System for excisable goods, cautioning that it could impose heavy compliance costs, create operational bottlenecks, and yield limited incremental revenue.
The association notes that the proposed Tax Stamp System contradicts the Nigeria Tax Act 2025, which consolidated and rationalized taxes, providing businesses, especially small and medium-sized industries (SMIs), with relief from multiple levies.
The introduction of a tax stamp system risks clawing back these gains, effectively imposing a new “hidden tax” on industries under the guise of compliance.
MAN highlights that existing digital systems, such as the Nigeria Customs Service’s B’Odogwu Automated Excise Register System (ERS) and the Federal Inland Revenue Service’s (FIRS) e-invoicing, already provide end-to-end tracking and transparency.
These systems have made it possible for the government to monitor excisable goods without the need for tax stamps.
The association also warns that the Tax Stamp System could lead to increased costs passed to consumers, risk of upsurge in illicit trade, and reduced competitiveness for local industries, particularly in the context of the African Continental Free Trade Area (AfCFTA).
MAN cites international experiences with tax stamp systems, including in Kenya, Tanzania, Uganda, and Ghana, which have shown that such systems often lead to high compliance costs, operational strain on small and medium enterprises (SMEs), and reduced competitiveness.
In light of these concerns, MAN recommends that the government reject any proposal to rollout or implement Excise Tax Stamps until a comprehensive stakeholder engagement process is undertaken and an inclusive impact assessment study is carried out.
The association also suggests that the government rely on existing digital systems, protect the gains of the 2025 Tax Reform Acts, and adopt smarter and more cost-effective alternatives that strengthen tax compliance enforcement.
MAN strongly urges the Federal Government to exercise caution in introducing a Tax Stamp System in Nigeria, citing international experiences that show such systems often hinder local industry, erode gains in tax simplification, and yield limited revenue impact.
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