-by our correspondent.
An economist, Dr Muda Yusuf, has warned the Federal Ministry of Finance and the National Assembly against the proposed reintroduction of excise tax on a sector of the manufacturing industry in the country.
Dr. Yusuf gave the warning in a statement on Sunday following the announcement by the Nigerian Customs Service to reintroduce excise duties on the production of soft drinks , after the 2022-2024 Medium Term Expenditure Framework assessment in the National Assembly.
He said the plan was ill-timed, inappropriate and detrimental to the growth of the nation’s manufacturing sector as it negated the economic recovery and job creation objectives of the Government.
“Many upcoming small businesses in the beverage sector would be hard hit by this proposal. The millions of micro enterprises in the soft drinks’ distribution chain will be adversely impacted by the imposition of the excise tax.” Dr. Yusuf noted.
He explained that manufacturing companies in the country were currently going through turbulent times which affect sales, turnover, profitability, shareholder value and the sustainability of investments in the sector.