NCS instructed businesses classified as MSMEs to pay N2 million for registration.
Following reports that the Nigeria Customs Service (NCS) has directed Micro Small and Medium Scale Enterprises (MSMEs) businesses to pay N2 million as registration levy for sweetened beverages at the ports, the Federal Ministry of Industry, Trade and Investment has pledged to wade in by meeting with Customs and Ministry of Finance to find amicable solution to the matter.
Indeed, the organised private sector operators are complaining bitterly that the NCS’ directives to the SMEs could kill businesses in the country amid aggressive government’s revenue drive. The Minister, Otunba Niyi Richard Adebayo, disclosed this to New Telegraph, saying that President Muhammadu Buhari-led government had pledged to assist SMEs businesses because of the crucial role they play towards deepening Nigeria’s economy. According to him, the ministry will be meeting with the hierarchy of Nigeria Customs Service (NCS) and the Ministry of Finance to look into the matter with a view to finding an exception for SMEs operators.>>>>>Kindly Click Here To Read The Complete Article>>>>>
Adebayo said: “All I can say is as a ministry, we are not in support of that particular move (sweetened beverages drinks tax) at the ports; we have made our voice known on this. Also, we have made our views known on the matter. “But when it comes to issues like this, every government is looking for revenue, those of us who tried to block the avenues for these revenues, our voices are not heard as they tend not to listen to us at a time like this when government is considering every option to raise revenue drive. “However, we will continue to oppose taxes that we feel that would not make progress on our SMEs.”
The Minister continued: “We will advise you (local manufacturers) to write to me officially in regard to this and I will engage Nigeria Customs and the Ministry of Finance to see what exemption we can offer on behalf of the SMEs. “Government promises to assist SMEs, so if we see anything that will help solve their challenges, we won’t hesitate to do that.
“So write to us in the ministry on this particular one and we will engage the necessary agencies of government and see what can be done to ameliorate the plights of the SMEs businesses in the country.” A key member of the Manufacturers Association of Nigeria Export PromotionGroup (MANEG), Bashorun Olayiwola, had raised the alarm that SMEs operators at the ports were facing challenges over the NCS compelling them to pay initial N2 million as registration to operate at the gateways dubbing it, sweetened beverages drinks tax. He said: “And some of our SMEs have a problem and the problem is tax on sweetened beverages drinks. Sweet drinks’ tax will kill the SMEs because the Customs said they should first of all register with about N2 million then after that they will now position their offices inside the small scale office. “But then, when the thing was being conceived is for the big industries. When they press buttons, what they get in one day, no SMEs can make it in one year and now, it won’t be easy to get these people off the streets, so please, government help us.” Already, the Manufacturers Association of Nigeria (MAN) is visibly indisposed to the introduction of excise duty of N10/liter on non-alcoholic, carbonated and sweetened beverages. The Director-General of MAN, Segun Ajayi-Kadir, said in an interview with New Telegraph in Lagos that the excise duty would lead to high production costs, which in turn would result in dwindling profits. This will grossly impact the small and emerging business owners in non-alcoholic beverage sector. According to him, “Nigeria is the 6th highest consumer of soft drink but per capita consumption is low. Introducing excise will easily reduce production capacity causing manufacturers to struggle to meet investor commitments as well as cause investor to take investments to other countries. “A decrease in production levels or ability to purchase raw materials as a result of the introduction of excise tax will result in reduced profits for the supply chain players in the non-alcoholic beverage sector.”
