The Nigerian Employers’ Consultative Association (NECA), condemned the proposed budget by the Federal Ministry of Finance, Budget and National Planning to increase excise components on tobacco, spirits, alcoholics, and non-alcoholic beverages. This was said in a statement by its Director General, Mr. Adewale Oyerinde.
The Organized Private Sector, has also rejected the proposed budget through the Tariff Technical Committee, to increase tariffs on select products. They warned that the increase will incapacitate its productive capacity, and contribution to national development. If implemented, the proposed increase would bring about a departure from the recently set up roadmap set out in the 2022 Fiscal Policy Measures and Tariffs Amendments (FPM 2022) that covers 2022-2024.
The budget was rejected because of the current minimal growth of the economy. It indicates that a huge tax increase would not achieve the desired results for all stakeholders. NECA believes that if another increase is imposed, the industry will suffer more and consumers may begin to purchase products that are not so expensive. At this point, the rate of increase in the roadmap of the Fiscal Policy Measures and Tariffs Amendments 2022, should be maintained.