Group gives FG 30 days ultimatum to revert tariff on alcoholic, tobacco products

By Idris Ibrahim

Under the umbrella of Business Renaissance Group (BRG) and Sustained Development Collective (SDC), gave the ultimatum while briefing journalists in Abuja Tuesday.

President of BRG, Mazi Omife said the upward review of excise duty on locally produced alcoholic beverages and tobacco was an issue of vital socio-political and economic importance to the country.

“The wines and spirits industry is one of the few surviving sectors of the Nigerian economy and all patriots and men of good conscious should strive to ensure that the sector flourishes.

“Nothing should be done to endanger the sector which presently employs about 250,000 Nigerians both directly and indirectly with an investment portfolio of about N420 billion.

“In conclusion, the BRG restated the obvious fact that the astronomical increase in the tariff is counter-productive and will lead to massive job loss, turn the country into dump ground-yard for foreign product, further pauperise Nigerians and stifle growth in an otherwise resilient sector of the economy.

“We therefore demand from the Federal Government, especially the Minister of Finance to take immediate steps to review the excise duty with a view to reducing it to to in consonance with present day reality,”  he stated.

President Muhammadu Buhari had in March 11, approved an amendment to the excise duty rates on the aforementioned products with effect from June 4.

The federal government in a statement said the new excise duty rates would spread over a three-year period from 2018-2021 in order to moderate the impact on prices of the products.

FG posited that the upward review of the excise duty rates for the products would achieve dual benefits of raising the government revenue, as well as reducing the health hazards associated with tobacco related diseases and alcohol abuse.

However, the group threatened to take legal action if the federal government failed to meet up with its demand within 30 days.

“We hereby give a 30-day Grace period for the Minister of Finance to revert to status quo or at best come up with a modification of the amendment based on input from critical stakeholders whose opinions must be sought so as to collectively arrive at a new legislation that will impact positively on both the government the industry and the general populace and ultimately help the further growth and development of the country.

“In the unlikely event that the Minister fails, refuses or neglects to heed this call within 30 days from today we shall be left with no alternative than to seek judicial redress without further recourse to government,” the group threatened.