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HomeBUSINESSRemove Tax Waiver on Soft Drinks, NCS Tells FG

Remove Tax Waiver on Soft Drinks, NCS Tells FG

The Nigerian Customs Service (NCS) has called for the removal of tax waivers granted to companies producing carbonated drinks.
The Comptroller General of Customs, Col. Hameed Ali (rtd), made the call yesterday at the Senate Joint Committee on Finance and National Planning on the projection of the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper. He said doing so would boost revenue generation since tariff collection on import would drop from 2021 due to the trade agreement between Nigeria and neighbouring countries.
The Customs boss assured that the agency would generate N1.2 trillion this year and had already collected N830 billion by July.
He said the defunct Interim National Government of Ernest Shonekan, granted the waivers to the carbonated drinks manufacturers in 1993 to encourage local firms.
“We have been pushing for the expansion of our own excise collection. During the Shonekan regime, excise was stopped for carbonated drinks manufacturers like Coca-Cola. “The only ones approved for us are tobacco alcoholic beverages. Therefore if tobacco and alcoholic beverages companies are paying tax, the carbonated drink manufacturers should also pay.”
President of the Senate, Ahmad Lawan, said collection of tax on carbonated drinks was in order. “The executive and the legislature should work together to identify all firms that really deserve waivers because I don’t understand why Coca-cola for instance should not pay excise.”


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