OPSN opposes excise tax increase, demands reversal

The Organised Private Sector of Nigeria on Tuesday demanded the immediate reversal of the recently announced increase in excise rates, saying it would grossly affect businesses and the Nigerian economy.

OPSN, comprising the Manufacturers Association of Nigeria, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, the Nigeria Employers’ Consultative Association, the Nigerian Association of Small Scale Industries, and the Nigerian Association of Small and Medium Enterprises, said this in a joint statement signed by representatives.

In the statement, the group said it “strongly opposes the recently announced increase in excise rates as contained in the circular dated 20th April 2023, signed by the Honourable Minister of Finance, Budget and National Planning,” Zainab Ahmed.

It added that the increase was “unwarranted, ill-timed and inimical to the Nigerian economy and the manufacturing sector in particular, and the OPSN calls for its immediate reversal.”

According to OPSN, the manufacturing sector is presently grappling with unprecedented challenges including the sustained scarcity of naira, limited access to foreign exchange, a struggling economy and persistent inflation, alongside perennial problems of multiple taxation and epileptic power supply.

“These challenges have resulted in a record crash in sales for most businesses running into billions of Naira, with the result that manufacturers are struggling to remain in business, amidst looming job cuts, mothballing of factories and total shutdown of businesses.

“Therefore, increasing excise rates at this time is extremely ill-advised and may sound the death knell for affected businesses and their contribution to the national economy, even as the broader manufacturing sector continues to deteriorate.

“These challenges have resulted in a record crash in sales for most businesses running into billions of Naira, with the result that manufacturers are struggling to remain in business, amidst looming job cuts, mothballing of factories and total shutdown of businesses.

“Therefore, increasing excise rates at this time is extremely ill-advised and may sound the death knell for affected businesses and their contribution to the national economy, even as the broader manufacturing sector continues to deteriorate.