Economy

Inflation: NBCC raises concerns over excise duty increment

The Nigeria-British Chamber of Commerce has warned that the proposed increment in the excise duty by the federal government will lead to more inflation in the country.

 

Daily Post reported that the organisation made this assertion via a statement issued on Tuesday by its President, Mrs Bisi Adeyemi.

 

Recall, that the federal government through the Federal Ministry of Finance, Budget and Financial Planning has concluded plans to effect a hike in the specific excise component of some products such as alcoholic and non-alcoholic beverages and tobacco.

 

The NBCC president, however, called for a review of the policy considering its impact on the Nigerian business environment.

 

According to her, the planned increase is a significant digression from its recently adopted 2022 Fiscal Policy Measures and Tariffs Amendments roadmap.

 

Adeyemi, who lamented about the manufacturing sector’s current battles with, increment in energy costs, rising inflation, foreign exchange scarcity and inadequate infrastructure, insisted that an increment in excuse duty would worsen the situation in the country.

 

Adeyemi, while using the opportunity to implore the federal government to retain the approved excise regime, also urged that oil theft be curbed, in order to increase the revenue being generated yearly.

 

The statement read, “While we understand and appreciate the need to improve Federal Government income, a holistic review of the peculiarities of Nigeria’s current micro and macroeconomic realities as well as the impact of these on businesses and Nigerians specifically, should be undertaken.

 

“The manufacturing sector is currently contending with sundry issues, which include skyrocketing energy costs, rising inflation, foreign exchange scarcity, poor and inadequate infrastructure, increasing difficulties associated with ease of doing business, and other headwinds that increasingly challenge competitiveness in the global market.

 

“The benefits of the retention cannot be overemphasized, some of which include a steadily increasing tax contribution from the affected sectors which will be delivered by the 2022 FPM;

 

“These sectors are able to support Government’s objective of reducing the high rate of unemployment reported to be at about 33.3%; and improve the inflow of foreign direct investment as investors’ confidence is strengthened by Government’s continuous demonstration of its willingness to create an enabling environment through stable and consistent policies.”

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