FG projects N250bn from excise duty

The Federal Government plans to raise N250.09bn from excise duty in 2023, according to findings by The PUNCH.

This was according to the 2023 fiscal framework document obtained by our correspondent.

According to the document, the Federal Government targeted N98.53bn from excise duty in 2021 and N161.7bn in 2022.

This shows that the government revenue target from excise duty rose by 153.82 per cent in two years and 54.66 per cent in one year.

The PUNCH reported in November last year that the Federal Government plans to introduce more sin taxes and cut down on tax incentives in 2023 through the proposed 2022 Finance Bill.

However, experts and organisations have kicked against the government introducing more excise tax.

The carbonated soft drinks Group of the Manufacturers Association of Nigeria in December last year said that the Federal Government’s claim to add a 20 per cent Ad-Valorem Excise Tax on carbonated soft drinks in a bid to raise taxes for investment into health is misleading.

According to the group, the cost of carbonated drinks will go higher if there is an additional excise tax and this has multiplier effects.

It stated that while controlling sugar consumption is essential, raising taxes is not the solution.

The Centre for the Promotion of Private Enterprises recently said the imposition of excise duty on all services will affect the business community negatively.

The CPPE CEO, Muda Yusuf, noted that the provisions of the new finance bill are too broad, inexact and wide-ranging and “makes the business community very vulnerable. There is no jurisdiction around the world where all services are liable to excise duty. Excise duties are typically specific and selective, and often imposed to disincentivise consumption or production of particular product groups.”

Expressing concerns over the heavy taxation burden on companies and the service sector, Yusuf stated, “We are concerned that companies in the service sector are already paying huge taxes in the form of company tax which is currently at 30per cent, tertiary education tax at 2.5per cent, NITDA levy at one per cent, NASENI levy at 0.25per cent, Police Trust Fund Levy at 0.005per cent and withholding tax on profit distribution at 10 per cent.

“All the taxes are percentages of company profit.  Additionally, there are numerous taxes and levies imposed by state governments.”

Financial experts have urged the Federal Government to stop the introduction of more taxes because of the nation’s weak economy.

-punch news