Nigerian Senate seeks suspension of new tariff on alcohol, others

Senators yesterday urged the Federal Government to put on hold the implementation of the excise tariff increment on alcoholic beverages and tobacco products.

The upper chamber said the suspension should be in force until all stakeholders  have been consulted.

It said the discussion with stakeholders should pave the way for consensus on the implementation .

The resolutions followed the adoption of the report of the Senate Committee on Finance which considered “The urgent need to review the excise tariff increment in order to save local distillers of beverages from looming extinction.”

Chairman, Senate Committee on Finance, Senator John Owan Enoh, presented the 16 page report at plenary yesterday.

The increase in the excise tariff rates on alcoholic beverages and tobacco products was approved by President Muhammadu Buhari after the adoption of the recommendation of the Tariff Technical Committee of the Federal Government.

The main reason for the increase in the excise rate is said to be government’s drive to increase revenue generation and the belief that taxation has proved to be a veritable tool in controlling the consumption of alcoholic beverages as they have negative health effect on consumers.