Connect with us
nairametrics
UBA ads

Business News

NB, IB, Champion Breweries lament over N35.8 billion excise duty  

Nigerian Breweries Plc, International Breweries, and Champion Breweries have decried the N35.8 billion spent as excise duties in the country, calling the Federal Government to slash the rate. 

Published

on

poor, performance, International Breweries, Quick Take: International Breweries' poor performance extends into Q3

Nigerian Breweries Plc, International Breweries, and Champion Breweries have decried the N35.8 billion spent as excise duties in nine months, calling on Federal Government to slash the rate. 

According to the brewers, the duty, which was fixed at N30 per litre of alcohol, is counter-productive. 

UBA ADS

For instance, Nairametrics understands that Nigerian Breweries paid about N33.9 billion on excise duty as at March 31, 2019(N25.8b in 2018 and N8.1b in Q1, 2019). 

While International Breweries paid N1.53 billion as at September 2018, Champion Breweries spent N311.3million as at December 2018 on excise duty.   

READ MORE: Nigerian Breweries considers product price increase as excise duties hike bites

GTBank 728 x 90

Although Guinness Nigeria Plc did not reveal how much it paid on excise duty, sources say it’s almost the same with Nigerian Breweries. 

Effects on operations: The Director, Legal and Corporate Affairs of International Breweries, a subsidiary of AbinBev Group, Michael Daramola said that the increment of excise duty rates on alcohol beverages and tobacco by the Federal government is killing the brewery industry. 

Daramola lamented that the increment was stifling the growth of the brewery industry as the duty has been increased by about 60% last year.  

Deal book 300 x 250
onebank728 x 90

We fought against the government’s increment of excise duty but somewhere along the line, the government still went ahead to increase it.

READ ALSO: NBC, Rite Foods, others to pay new tax as FG identifies new revenue streams 

“Excise is a tax that you pass on to the consumers; it is not an absorbable tax. But in the present economic situation of the country, we cannot pass that tax on to the consumers because the purse of the consumers is very lean and people are very price-sensitive, a slight change in price might make them reject the product. 

app
GTBank 728 x 90

“So we had to absorb the tax and that has really eaten into our bottom line. If you see the results of most of the breweries this year, you will found out that it has eaten far, far into it.” 

“Our contention is this, what we are using to absorb that tax is what we should have used to do other things. We should use it to increase our capacity and employ more people but with the increment, we cannot do this, we have to hold on to our present capacity.”Daramola said. 

Speaking further, Daramola went on to add that there have been talks with the government to learn about moves to further increase the duty. He said that if it was revenue the government needed, there should be an increase in growth of the economy. According to him, once the government overcharges people, it stifles growth and when there is no growth, no desired results can be achieved.  

Patricia

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Appointments

PwC admits 8 Nigerians, 16 others as partners across Africa 

PwC has about 400 partners and over 9,000 people spread across 34 countries in Africa.  

Published

on

PricewaterhouseCoopers (PwC) has admitted 24 professionals in Africa, including 8 Nigerians, into the firm’s partnership.

Akinyemi Akingbade, Chioma Obaro, Yinka Yusuf, Wura Olowofoyeku, Tosin Labeodan, and Rukaiya El-Rufai were all admitted into the firm’s Assurance practice, while Kunle Amida and Olusola Adewale were appointed into Advisory.

UBA ADS

From South Africa, nine partners were also admitted; Lumko Sihiya, Mary-Jane Mberi, Nitassha Somai, Erik Booysen, Dale Stonebridge, and David Hill, into Assurance.

Kerin Wood and Gavin Johnston have admitted partners into Advisory, and Michael Butler into the Tax and Regulatory Services.

In Zambia, the partners admitted include George Chitwa, Tax, and Martin Bamukunde in Assurance.

GTBank 728 x 90

Andre Burger was admitted Partner, Assurance in Namibia; Mwangi Karanja, Partner Assurance in Kenya; and Icho Molebatsi, Partner Assurance, in Botswana.

Two partners were admitted in Ghana, Richard Ansong in Assurance; and Kingsford Arthur in Advisory.

READ MORE: Dual citizenship firm opens office in Nigeria for millionaires, charges over $1 million

onebank728 x 90

About PwC

PricewaterhouseCoopers is a multinational professional services network of firms headquartered in London, United Kingdom, operating as partnerships in several countries under the PwC brand.

PwC has about 400 partners and over 9,000 people spread across 34 countries in Africa.

 

app
GTBank 728 x 90

Patricia
Continue Reading

Hospitality & Travel

Arik Air to resume flights on July 8 as FG lifts ban on air travel

Capt. Roy Ilegbodu announced that Arik Air airline would operate 3 flights from Lagos and Abuja in phase 1 of the re-opening.

Published

on

COVID-19: Arik Air suspends flights to West Coast, COVID-19: Arik Air. Aero, Dana, others suspend flight operations, Arik Air to resume flights on July 8 as FG lifts ban on air travel

Following the announcement by the Aviation Ministry that the Lagos and Abuja airports will reopen on the 8th of July, Arik Air announced on Sunday that its domestic flights will resume from July 8.

Chief Executive Officer, Capt. Roy Ilegbodu, announced in a statement that the airline would operate 3 flights from Lagos and Abuja in phase 1 of the re-opening. He also announced that flights to Port Harcourt will begin on July 11 when the airport reopens. Some part of his statement read:

UBA ADS

“We are ready to fly our esteemed customers again. All preparations have been made to make flying in this extraordinary period in the world safe and pleasurable.

Download the Nairametrics News App

“The airline has put various measures in place, in line with COVID-19 health protocols, as recommended by the World Health Organisation (WHO), International Civil Aviation Organisation (ICAO) and the Federal Government of Nigeria.

GTBank 728 x 90

“Passengers have been assured of their safety and wellbeing at every stage of their flight.

“Arik has worked actively with aviation agencies for an effective re-start of the industry and also ensure that agreed health measures are effectively implemented.”

READ MORE: FAAN bans non-travelling passengers from airport as flight operations resume

onebank728 x 90

The CEO then advised that passengers come properly kitted with face masks during the flights.

Arik Air suspended operations on March 27 after the Federal Government closed the airports to contain the spread of COVID-19 in Nigeria.

app
GTBank 728 x 90
Patricia
Continue Reading

Companies

NSITF board to investigate suspended MD and others over financial misconduct

Published

on

NSITF, FG moves to scrap hazard allowances earned by State Governors

The board of directors of the Nigerian Social Insurance Trust Fund (NSITF) has revealed that it will investigate the activities of the suspended Managing Director, 3 Executive Directors, and 8 other senior management staff over financial breaches and gross misconduct.

This was disclosed by the Chairman of the board of NSITF, Mr. Austin Enajemo-Isire, in a statement in Enugu on Sunday July 5, 2020.

UBA ADS

Enajemo-Isire said that the Managing Director and other top management staff of the organization would have the opportunity to clear themselves of any wrongdoing with the probe panel which was being set up.

READ MORE: Ecobank appoints Aissatou Djiba Diallo to oversee its fintech initiatives 

While reacting to claims that the suspension did not follow due process as President Muhammadu Buhari did not approve it, Enajemo-Isire said that the approval for the suspension of the affected staff had been conveyed to the Labour Minister in a correspondence referenced SGF. 47/511/T/99 of June 30, 2020.

GTBank 728 x 90

According to the Chairman, “The minister has conveyed this approval and directives to me for necessary action in terms of setting up a board-driven investigative panel.

READ MORE: Nigeria’s debt rises to $79.5 billion, as debt to revenue ratio worsens

“This is to give the affected officers the opportunity to clear themselves of the financial and procurement breaches and acts of gross misconduct and other infractions that gave rise to their prima facie indictment.

Deal book 300 x 250
onebank728 x 90

“It is in this light that I have decided to call a virtual meeting of the management board on Tuesday, July 7, 2020, to consider the modalities for our action.”

Download the Nairametrics News App

He, therefore, appealed to staffers of NSITF and their social partners to keep calm and exercise restraint.

app
GTBank 728 x 90

A few days ago, Nairametrics reported the suspension of the Managing Director and some senior management staff over corruption allegations. However, the management in its reaction debunked that claim and said that the President did not approve their suspension but that rather, it was the sole decision of the Labour Minister, Chris Ngige, who they said was overreaching himself.

Patricia
Continue Reading