The Nigerian Customs Service says that companies have a 14-day grace period with effect from May 27 to register for payment of excise duty or face sanctions.
This was disclosed by Comptroller Queen Ogbudu of the Lagos Industrial Command on Thursday in Lagos, according to the News Agency of Nigeria.
She added that companies that fail to comply after the 14-day grace period will have their premises sealed
What the NCS is saying
Ogbudu said, “We are appealing to other factories that are not yet under the excise control because of the fact that they are not aware or they are hiding, they want to avoid paying excise duty, to come forward.
“We are advising them to come forward and do the needful because in a short while, we are going to go all out for them and by the time we get them, we will seal their premises and make them face the wrath of the law.
“It is not fair that one will have a factory producing sizeable goods and they are not paying excise duty while others are paying.”
She added that the NCS is equally asking for the continuous support of stakeholders, more dedication, patriotism, and openness.
“When I resumed, I made sure a reminder was sent to all your companies before the invitation to come today, to keep you abreast of the fiscal policy that is duly signed by the finance minister.
“Carbonated and sweetened drinks, including fruit juice have N10 per litre; beer and stout, N40 per litre; wines, 20 per cent duty and N50 per litre; whiskey, brandy, vodka and rum, have 20 per cent duty and N50 per litre.
“This is the one that concerns us in Lagos Industrial and that is why we are bringing it to your attention,” she said.
She added that factories with Excise Factory Number (EFN) were required to apply for a Revised Entry of Premises.
Some of the companies that attended the stakeholders’ meeting are Nigerian Bottling Company, Niger Belt company, 7up bottling company, Lacasera, Coco House West Africa and others.
What you should know
- Nairametrics reported that the Federal Government announced the introduction of excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages in the country.
- The tax is part of a new policy enacted by President Muhammadu Buhari in the Finance Act, which was signed into law alongside the 2022 Appropriation Bill on December 31, 2021.
- The Manufacturers Association of Nigeria has called on the FG to halt the planned N10 naira per litre tax on sweetened and non-alcoholic beverages (Sugar Tax) which was proposed by the Finance Minister as part of its recent Domestic Revenue Mobilisation.
- Taiwo Oyedele, Fiscal Policy Partner and Africa Tax Leader, PwC, at the Nigerian Economic Outlook 2022 stated that the planned N10 naira per litre tax on sweetened and non-alcoholic beverages (Sugar Tax) as part of its recent Domestic Revenue Mobilisation may see an increase in the retail cost of beverages by 5%.