Nigerian Breweries has stated that any further increase in excise duty by the Federal Government would harm its business and operations.
The Managing Director of Nigerian Breweries, Hans Essaadi, stated this on Wednesday during the company’s pre-annual general meeting in Lagos.
He said, “It is our firm belief that as a big corporation, we are partly an alcoholic beverage and part of non-alcoholic beverages but we have to pay our duties and we respectfully want to pay our duties and taxes in full.
“At the same time, the notion of further excise tax increases, including significant ones that are being rumoured at this point, would have a devastating effect on our business.”
He noted that raising the excise tax at this time was the wrong thing to do.
“We are in dialogue with the government, but we wanted to pay fair amounts of tax without overdoing it because ultimately, an excise tax increase means a price increase in the market.
“An increase significantly means price increases in the market because it is indirectly a tax to consumers, leading to higher consumer prices with restricted disposable income, which will lead to less revenue. But ultimately, it also leads to more poverty in the market.”
Despite the obvious challenges enveloped with the rumoured increase, he stressed that the Nigerian Breweries would continue to engage critical stakeholders in constructive arguments to jettison the idea of any hike in the current economic climate.
He said, “We are not alone, as we are a one-off business confronted with these challenges. It is for us to continue to have constructive dialogue with the authorities that an excise duty hike at this time is the wrong thing to do.”
He said the company’s performance in the first quarter of 2023 was plagued with challenges amid the scarcity of both foreign and local currencies.
Source: The Punch
