Beer industry urges FG to drop tax stamp plan

Breezynews
3 Min Read

The beer industry has requested the Federal Government to jettison the introduction of tax stamp because of its negative consequences for the economy.

It announced support for the Manufacturers Association of Nigeria (MAN)’s call for the government to rescind the proposal to introduce tax stamps

The industry called on the Federal Government to sustain existing home-grown digital systems that deliver full visibility of excise operations.

Executive Director, Beer Sectoral Group of MAN, Abiola Laseinde said the tax stamps (digital identifiers also referred to as tack and trace systems) will be counterproductive.

She warned that the system presents operational challenges and financial risks that could undermine the fragile recovery of the manufacturing industry and the Nigerian economy.

She added in a statement that ‘the tax stamps system is largely inefficient, causing production slowdowns, distribution delays, product stock-outs, and high compliance costs’.

She explained that the industry is concerned that this proposal is coming at a time when operators are already ‘grappling with rising excise rates, foreign exchange volatility, and high inflation—making the additional burden of implementing tax stamps a serious threat to business sustainability’.

‘Tax stamps are often positioned as a solution to illicit trade, would have no benefit to beer as there is zero illicit in the sector. The brewing process is complex, the product is bulky, and resale value is low—making counterfeiting unprofitable. It is also pertinent to note that the beer industry already maintains strict compliance, with digital counters, on-site Customs officers, and auditable records in place’.

The Federal Government has already invested in digital systems that deliver full visibility of excise operations. Most recently, the Nigeria Customs Service (NCS) successfully launched and piloted the B’Odogwu automated Excise Reporting System (ERS), a modern platform that digitizes excise administration. ERS replaces manual registers with an automated process that:

– Tracks production volumes and excise computation in real time

– Enhances compliance monitoring through full transparency

– Creates an auditable digital trail that reduces leakages and inefficiency

Giving alternatives to the government, the beer industry, Laseinde said: ‘Accordingly, we urge the government to consider the following actions in the national interest:

• Rescind the proposed rollout of tax stamps to avert disruption to production, jobs, and revenues.

• Consolidate and strengthen existing systems like Customs’ ERS and FIRS e-Invoicing, which are effective, transparent, and locally driven.

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